ICANBusiness LawEmployment Law2023

Which of the following conditions must be satisfied for a covenant in restraint of trade contained in an employment contract to be declared valid and enforceable by a Nigerian court?

AThe covenant must impose a worldwide permanent restriction on competing activities.
BThe employer must prove that the restraint protects a legitimate proprietary interest and is reasonable between the parties and in relation to the public interest.CORRECT
CThe covenant must have been registered and sealed by the National Industrial Court of Nigeria prior to contract execution.
DThe employee must be paid an upfront cash indemnity equal to five years' base salary upon signing.
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Why the answer is B, and why the others tempt you.
Under Nigerian common law, covenants in restraint of trade are prima facie void unless the party seeking enforcement demonstrates that the clause protects a legitimate proprietary interest (such as trade secrets or trade connection) and is reasonable regarding time, geographical area, scope, and public interest.
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