Chappel v. Brockway
New York Supreme Court
Contracts in restraint of trade. The plaintiff declared on a bond dated 9th July, 1835, in the penal sum of $25,000, executed to the plaintiff by the defendant; which, after reciting that the defendant had been engaged in running a line of packet boats upon the Erie canal, that he had on the day of the date of the''bond sold his boats and othei* property connected with them to the Rochester and Buffalo Packet Boat Company., for the consideration of $12,500, and that ' he had…
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Contracts in restraint of trade. The plaintiff declared on a bond dated 9th July, 1835, in the penal sum of $25,000, executed to the plaintiff by the defendant; which, after reciting that the defendant had been engaged in running a line of packet boats upon the Erie canal, that he had on the day of the date of the''bond sold his boats and othei* property connected with them to the Rochester and Buffalo Packet Boat Company., for the consideration of $12,500, and that ' he had agreed with the company as a part of the sale and purchase of the boats, &c. that he would not at any time thereafter…
1Opinion of the Court
By the Court,
Bronson, J.
The common law will not permit individuals to oblige themselves by a contract, where the thing to be done or omitted is injurious to the public. Contracts in restraint of trade are, for the most part, contrary to sound policy, and are consequently held void. This is the general rule. There znay be cases where the contract is neither injurious to the public nor the obligor, and thezi the law makes an exception, and declares the agreement valid. The general presumption is against all contracts in restraint of trade, and consequently it lies upon hizn who seeks to enforce…
2Cases cited2 opinions
- Nobles v. BatesNew York Supreme Court · 1827
- Perkins v. LymanMassachusetts Supreme Judicial Court · 1813
3Cited by28 opinions
- Diamond Match Co. v. . RoeberNew York Court of Appeals · 1887
- Chicago, St. Louis & New Orleans Railroad v. Pullman Southern Car Co.Supreme Court of the United States · 1891
- Hodge v. . SloanNew York Court of Appeals · 1887
- McCurry v. GibsonSupreme Court of Alabama · 1895
- Wakefield v. VanTassellIllinois Supreme Court · 1903
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