What is the test for a reasonable restrictive covenant?

Alberta, Canada


The following excerpt is from Altam Holdings Ltd. v. Lazette, 2009 ABQB 458 (CanLII):

The courts have also held that reasonable restrictive covenants to have the following characteristics: 1) Protects a legitimate proprietary interest; 2) Reasonableness in terms of duration, geographical location and overall fairness between the parties; and 3) The covenant does not seek to prevent competition generally but is a reasonable restriction between the parties and is not otherwise void as being against public policy. Employment Law in Canada -11.31 Herff Jones Canada Inc v. Todd 1996 CarswellAlta 260 at para. 5 Winnipeg Livestock Sales Ltd. v. Plewman 2000 MBCA 60 at para 25 Legitimate Proprietary Interest

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