Restraint Of Trade Legal Meaning and Definition

Here is a simplified definition of the legal term Restraint Of Trade.

Restraint of Trade (noun): This is a legal term referring to any action or agreement that restricts or limits business transactions with the aim of reducing or preventing fair trade or healthy competition. An example of this might be a pact made between a seller and a buyer, where the seller promises to only sell goods to that particular buyer or their associates.