What is the test for restrictive covenants in a commercial contract?
Alberta, Canada
The following excerpt is from Romantic Planet Vacations Inc v Hartman, 2015 ABQB 743 (CanLII):
In a commercial context, the test is different. “The interpretation of restrictive covenants requires the application of different rules depending on whether the covenants are found in commercial agreements or in contracts of employment. These rules will be more generous in the commercial context, but much stricter in the context of contracts of employment or service”: Payette v. Guay Inc., 2013 SCC 45, para. 2 and see para. 35.
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