High court rules on noncompete, nonsolicitation clauses in business sale

November 03, 2013 0 COMMENTS

By Isabelle East-Richard

A recent Supreme Court of Canada decision arising out of Québec will have broad ramifications across Canada.

In Payette v. Guay Inc. (2013 SCC 45 (September 12, 2013)), the Supreme Court of Canada settled the debate over whether the employment contract provisions of the Civil Code of Québec also apply to noncompete and nonsolicitation clauses set forth in business sale agreements. In so doing, it addressed the distinction between the rules that apply to restrictive covenants found in an employment contract and those found in a contract for the sale of a business. read more…