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Mitchel v. Reynolds

Court of King’s Bench

24 Eng. Rep. 347 (1711)

Relevant factsFree

Reynolds (defendant) leased his bakery to Mitchel (plaintiff) for five years and, as part of the lease, agreed not to compete with Mitchel in the baking trade during the lease term and within the town of St. Andrews Holborn, backed by a 50-pound bond if he did. When Reynolds began baking again within the town during the lease term, Mitchel sued to enforce the bond, and Reynolds defended by arguing the non-compete provision was itself an unlawful restraint of trade.

IssueFree

Whether an agreement not to compete for a limited time and in a specific geographic location is an unlawful restraint of trade.

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