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restrictive covenant

3 replies

goatsclimbtrees · 04/06/2010 09:58

I ran a leasehold business until March and on selling the lease, signed a restrictive covenant to say I would not have a business of the same nature within a 5 mile radius for 2 years.A great opportunity has now arisen for me to buy a business nearby -it is not the closest business of the same nature to the one I leased, and by signposts, is 5 and a half miles away (village to village). I would like to start looking into aquiring this business but am worried I might be in breach of covenant. Does anyone know how the distances in such cases are measuredis it as the crow flies or would the distance be measured by road signswould it be door to door of the businesses, or the distance between the 2 villages where the businesses are located--sorry-difficult to explain more succinctly!

OP posts:
CMOTdibbler · 04/06/2010 10:05

It would be as the crow flies - think of a 5 mile circle around your previous business.

AMumInScotland · 04/06/2010 10:14

I would say "radius" means a circle, centred on the front door of the old business. Get a map and measure the distance door-to-door if you can, or at least check that it must be more than 5 miles because of where other landmarks that you can see on the map are situated.

goatsclimbtrees · 04/06/2010 10:37

Thanks!

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