Rory is a professional martial artist who until last year owned and operated a martial arts centre in Marion called "Extreme Self-Defence". Rory operated Extreme Self-Defence as a sole trader. Early last year Rory, who is in his early 60s, decided his body needed a break from martial arts and decided to sell "Extreme Self-Defence" to one of his long-time instructors, Dave Edwards. The sale of business contract contained a restraint of trade clause which said:"The vendor must not carry on a business of the same nature anywhere in the Adelaide metropolitan area for a period of three years."

Last month Dave became aware that a new martial arts centre, operated by a company called Extreme Martial Arts Pty Ltd, had opened in Port Noarlunga (which is approximately 2O kilometres south of Marion at the southern end of the Adelaide Metropolitan area).Dave also discovered that Rory is the sole director and shareholder of Extreme Martial Arts Pty Ltd.

Can Dave enforce the restraint of trade clause against Extreme Martial Arts Pty Ltd?

Please note: for the purpose of this question, you can assume that the courts will lift the veil of incorporation so that Dave can seek to enforce the terms of the sale of business contract against Extreme Martial Arts Pty Ltd.The issue you need to consider is whether the restraint of trade clause is reasonable.