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First Principles of Business Law |
| Circumstances that may invalidate a legal transaction |
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7. Illegal transactions |
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7.2. Common law illegality |
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Read the facts and the question and then choose the best answer. A, a Sydney accountant, employs B to work for his firm. A explains to B that his business depends greatly on the personal contacts he has made as well as the specialised auditing processes he has developed. He says that B will learn these things and, to protect A's business should B decide to leave, it will be a term of the contract that B will not work for any other Australian accounting firm for 20 years after leaving A's business. B agrees to this. Five years later, B resigns from A's firm and immediately gets a job with another accounting firm in Perth. A brings an action to enforce his agreement with B. In her defence, B says the restrictions imposed on her are contrary to public policy and therefore void. Is B correct? |
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