First Principles of Business Law
Remedies for breach of contract

5. Injunctions

5.3. Taking account of the indirect effects of injunctions

 

 

 

Read the facts and the question and then choose the best answer.

A, a fashion model, engages B Co., a management company, to provide her with management services for five years. The contract includes an undertaking by A that she will not appoint any other manager or management company for the same period. After a year, A tells B Co. that she can no longer work successfully with B Co. She wants to replace B Co. with another manager, C. B Co. says that it will seek an injunction to prevent A from doing this. A says that she cannot work as a model without a manager, and that she is not qualified for any other work.  In these circumstances, is a court likely to issue an injunction to prevent A from appointing another manager?

b) No. In the circumstances, an order that prevents A from appointing anyone other than B Co. as her manager will have the same effect as ordering specific performance of A's promise to employ B Co. as her manager, which is something the court would not do.

(a) Yes. The court is likely to issue an order to stop A from employing anyone other than B Co. as her manager. Whether the court would order specific performance of A's promise to employ B Co. as her manager is a separate matter altogether.

 

 

 

 

 

 

  

 

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