Im often asked about contracts that bands or songwriters sign which they consider to be unfair. The law with regard to the validity of agreements in restraint of trade was fully considered by this House in Esso Petroleum Co. Ltd. v. Harper’s Garage (Stourport) Ltd. [1968] A.C. 269
Here it was held that the terms of the agreement were so restrictive that either they cannot be justified or they must be justified by the party seeking to enforce the agreement? If there is room for justification then this party would have to prove it was justified normally by showing that the restrictions were no more than what was reasonably required to protect his legitimate interests.
A crucial but unreported case was “Armatrading v. Stone and Another ([ 1985] unreported)” Her manager acted for both artist and recording company. The court set aside the contract as they were ‘ unduly onerous and unconscionable’
Make sure you seek independent legal advice!
