The case for non-compete clauses

The non-compete clause has been troubling people for over six hundred years. Back in 1414, one Mr. John Dyer signed a contract not to ply his trade in the same town as that of his master for six months after his apprenticeship concluded. When the master attempted to enforce this…

Appetite for contractual destruction

There must be a convoluted logic to this, but why is it that commercial contracts are written to relentlessly appeal to our appetite for senseless destruction? We were animatedly discussing ‘Business Purpose’ clauses at my ‘Understanding Joint Ventures’ workshop last month when I realised that practically everyone in the room…

Of holy cows and shareholders contracts

It amazing how the seemingly easiest legal questions are sometimes the hardest to answer. Other than a 100 per cent buy out, every M&A transaction generates a shareholders’ agreement by which company owners bind themselves to special rights and obligations. How far these agreements are enforceable in Indian law is…