Business Law

Running head: BUSINESS LAW 1
Business Law

BUSINESS LAW 2
Table of Contents
Answer to Question 1.................................................................................................................3
Issue........................................................................................................................................3
Rule........................................................................................................................................3
Application.............................................................................................................................3
Conclusion..............................................................................................................................4
Answer to Question 2.................................................................................................................4
Issue........................................................................................................................................4
Rule........................................................................................................................................4
Application.............................................................................................................................5
Conclusion..............................................................................................................................6
References..................................................................................................................................7

BUSINESS LAW 3
Answer to Question 1
Issue
Whether David is liable for the breach of the clause pertaining to restraint of trade and for the
repayment of the amount of one hundred thousand dollars with regard to loan instalment?
Rule
The law of contract would be applicable accordingly with regard to the capitulation upon the
clause pertaining to restraint of trade and the aspects pertaining to the amount of repayment
to be made as per the instalments as stipulated between Monica and Standard Bank Limited.
The relevant partnership act would also be applicable taking account of the territorial
jurisdiction along with the relevant provisions of the Corporations Act of 2001.
Application
The period pertaining to the restraint of trade must be taken into account as far as the clause
in the employment contract formed between Nu Shampoo Pty Limited and David
accordingly. If it is determined and identified accordingly that the period pertaining to the
restrained of trade has elapsed, then David is not liable for the breach of the employment
contract formed with Nu Shampoo Pty Limited. As a result, the clause pertaining to the
restraint of trade must be analysed and interpreted in a proper and appropriate manner as far
as the comprehensive solution to David is concerned (Bildfell, 2015). It would play a vital
role in the capitulation upon the defence of David in an effective and efficient manner
accordingly as far as the aspect pertaining to breach of contract is concerned. With reference
to the aspect pertaining to competing business, it is to be analyzed and accordingly detected
whether Nu Shampoo Pty Limited is in direct competition with Hair Glow Limited as far as
the common products and services offered by both of these services are concerned. In such
aspect, a market analysis may also be conducted accordingly by an expert whose opinions
would be testified accordingly (Bishara, Martin & Thomas, 2015). It is also to be seen
whether the restraint of trade clause implies non-solicitation of business or not. If the aspect
pertaining to non-solicitation of business is observed form the restraint of trade clause as per
the contract of employment formed between Nu Shampoo Pty Limited and David, then it is
implied that David is barred from the inducement of the employees and customers of Nu
Shampoo Pty Limited and David accordingly (Nicholls, 2015). If such a clause is
contravened, then David would be liable for breach of contract and the penalties would be
imposed accordingly. As a result, it is imperative that the clause pertaining to the restraint of
trade in the employment contract formed between David and Nu Shampoo Pty Limited would
play an extremely important role in the determination of the aspect pertaining to the breach of
contract on part of David with regard to the formation, registration and incorporation of the
company Hair Glow Limited after leaving Nu Shampoo Pty Limited accordingly (Sandeen &
Rowe, 2016). The aspect pertaining to confidentiality would also be taken into account if it is
expressly mentioned in the restraint of trade clause in the employment contract formed
between David and Nu Shampoo Pty Limited. It implies that the information with regard to
the affairs pertaining to the business activities of Nu Shampoo Pty Limited cannot be