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The importance of a signed contract when enforcing post termination restrictions

Most businesses, will ensure that new employees receive an employment contract or at the very least some form of statement setting out their terms and conditions. Unfortunately not all businesses ensure that employee’s return a signed version of the agreement back. 

On dispute, if the company have an unsigned contract in their possession, this begs the question as to whether the clauses contained in the contract/agreement are enforceable against the employee. 

This question was examined by the High Court in FW Farnsworth Limited v Lacy. The court was asked to determine whether the employee was bound by the post termination restrictions contained within an unsigned version of his employment contract. 

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