What is the difference between restrictive covenants in an employment contract and those in a commercial agreement?
British Columbia, Canada
The following excerpt is from EOS Transport Inc. v. Alta Pacific Transport Ltd., 2013 BCSC 2033 (CanLII):
The courts typically distinguish between restrictive covenants found in employment contracts and those contained in commercial agreements. As noted by Mr. Justice Wagner in Payette v. Guay inc., 2013 SCC 45 [Payette] at para. 2: 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.
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