Meaning & use
restraint of trade
Last updated
Meanings
noununcountablelegal
Any arrangement that limits free competition in business, such as an agreement to fix prices or keep rivals out.
Grammar: Usually used without an or the: agreements in restraint of trade.
Patterns
- in restraint of trade
- a restraint of trade
The court ruled that the price agreement was in restraint of trade.
Cartels are classic examples of restraint of trade.
Laws against restraint of trade protect consumers from inflated prices.
nouncountable or uncountablelegal
A clause in an employment or sale contract that stops a person from working in the same field or competing after leaving.
Grammar: Often discussed as a clause that a court may reject if it is too wide.
Patterns
- a clause in restraint of trade
The clause was struck down as an unreasonable restraint of trade.
Her contract contained a restraint of trade preventing her from joining a rival.
Courts balance the restraint of trade against the company's need to protect secrets.
Common combinations
- in restraint of trade
- The contract was held to be in restraint of trade.
- unreasonable restraint of trade
- The judge found an unreasonable restraint of trade.
- restraint of trade clause
- The restraint of trade clause lasted two years.
- illegal restraint of trade
- Price fixing is an illegal restraint of trade.
Synonyms and how they differ
- anticompetitive practice
- Anticompetitive practice is the modern term in regulation, while restraint of trade is the older legal phrase.
- monopolization
- Monopolization means taking control of a market, which is narrower than any limit on competition.
- non-compete clause
- A non-compete clause is one specific example, while restraint of trade covers all such limits.
Opposites
Word family
- restrain verb
- to hold back or limit
- restraint noun
- a limit or control
- restrictive adjective
- limiting
- trade noun
- buying and selling of goods
Commonly confused: restraint of trade or trade restriction?
restraint of trade vs trade restriction
A trade restriction is a government limit such as a tariff, while restraint of trade is a private agreement limiting competition.
Practice
The court decided the clause was an unreasonable ____ because it banned her from working in her profession anywhere.
Choose one answer.
Restraint of trade names a contract term that limits a person's right to work or compete. A trade union is a workers' group and does not fit the phrase.
Make it your own
Write a sentence using “restraint of trade”, then check it and compare it with the examples above.