A contract in restraint of trade refers to an agreement between two parties that restricts one or both of them from engaging in a particular trade or profession. In most cases, these contracts are used to prevent a former employee from competing with their former employer or divulging confidential information to a third party.

In some instances, these types of agreements are considered illegal as they go against the basic principle of free competition. This is especially true when the restrictions are unreasonable or where they limit an individual`s ability to earn a livelihood in their chosen profession.

However, in many jurisdictions, these contracts are enforceable provided they meet certain criteria. For instance, the restrictions must be reasonable and necessary to protect legitimate business interests, such as confidential trade secrets, goodwill, or customer lists. If the restrictions go beyond what is necessary to protect these interests, the contract will likely be deemed unenforceable.

It`s also important to note that these contracts may have varying levels of enforceability depending on the industry or profession involved. For instance, a non-compete agreement that prevents a top-level executive from joining a competing company might be considered reasonable, while the same agreement for a low-level employee might not.

In conclusion, a contract in restraint of trade is a legal agreement between two parties that restricts one or both of them from engaging in a particular trade or profession. While these types of contracts are often used to protect business interests, they must meet certain criteria to be enforceable. As a professional, it`s important to understand the legal implications of these contracts and ensure that any content regarding them is accurate and reflects current legal standards.