CHAPTER 5 - Vitiating Factors & Illegality

Question 3

Padmapalasaki and Chandrakantha purchase an Indian restaurant from Priya. It is located in Glen Waverly, south east of Melbourne. In order to ensure he does not establish a similar restaurant in the same vicinity, they include a term in the contract that prohibits Priya "owning or managing" a restaurant within a 20 km radius of the restaurant for five years. Advise them whether this term would be an illegal restraint.

Answer Guidelines (IRAC):

Issue:

- Area of laws

Relevant Law:

- Name of cases

- Act of Parliament plus the section

Application:

- Apply the law to the new facts

Conclusion: