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H & R Block Ltd v Sanott

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H & R Block Ltd v Sanott
CourtHigh Court of New Zealand
Full case name H & R Block Ltd v Sanott
Decided13 August 1975
Citation[1976] 1 NZLR 213
Court membership
Judge sittingSomers J

H & R Block Ltd v Sanott [1976] 1 NZLR 213 is a cited case in New Zealand regarding the legality of restraint of trade clauses under the Illegal Contracts Act 1970.[1][2]

Background

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Sanott was employed as a manager of H & R Block's Christchurch office. After a falling out between them, Sannott resigned and set up in competition to them. H & R Block sought to enforce his restraint of trade clause excluding him for operating within 25 miles of their Christchurch office for the next 5 years.

Held

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The court found the restraint of trade clause was unreasonable, and modified it to excluding operating within 5 miles, for 3 years. Somers J said "The provisions of s 8 were intended to overcome the annihilating effect of the common law rules about excessive restraints and to alter those rules as to severance".

See also

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References

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  1. ^ Chetwin, Maree; Graw, Stephen; Tiong, Raymond (2006). An introduction to the Law of Contract in New Zealand (4th ed.). Thomson Brookers. pp. 377–378. ISBN 0-86472-555-8.
  2. ^ Walker, Campbell (2004). Butterworths Student Companion Contract (4th ed.). LexisNexis. pp. 169–170. ISBN 0-408-71770-X.