"2. We undertake to act in our capacities both as Shareholders and/or as beneficiaries under trusts of shares and as directors and/or officers in Dranez Holdings (hereinafter "
"In relation to the Side Letter the Court determines: (a) the Side Letter is enforceable by the Fifth, Sixth and Seventh Claimants against the First Defendant; (b) the First Defendant has acted in breach of the Side Letter; (c) and the Second Defendant procured the breach."
"I think it is now generally conceded that it is to the advantage of the public to allow a trader who has established a lucrative business to dispose of it to a successor by whom it may efficiently be carried on. That object could not be accomplished if, upon the score of public policy, the law reserved to the seller an absolute and indefeasible right to start a rival business the day after he sold. Accordingly it has been determined judicially, that in cases where the purchaser, for his own protection, obtains an obligation restraining the seller from competing with him, within bounds which having regard to the nature of the business are reasonable and are limited in respect of space, the obligation is not obnoxious to public policy, and is therefore capable of being enforced."
". . . there is no valid distinction to be drawn between a covenant given by a vendor not to compete with a business being sold and a covenant given by the proprietors of a business to an intending investor in that business as a condition of making that investment. The restrictions imposed will not be struck down where the court is satisfied that they are reasonably necessary to preserve the business in question from the competition of the proprietors or any of them."
". . . it was reasonable for the Investors as a condition of entering into the Investment Agreement to require the Brothers, and, in particular, Zamir, to enter into a covenant against competition with the Companies in the business of manufacturing and selling ventilators for so long as the Companies were conducting that business."
"the parties are likely to have been the best judges of what was reasonable between them."
"I have come to the conclusion that, on the evidence as it stood at the conclusion of the hearing, facts amounting to an estoppel preventing Zamir from denying that Kilroy and Dorley could enforce for their benefit the provisions of the Side Letter Agreement had been established. Zamir knew that the Replacement Investors were relying on his undertaking not to compete with the claimant companies contained in the Side Letter. He knew that they were not parties to the Side Letter and that in consequence no direct undertaking had been given by him to them. In the circumstances, it seems to me, that if, as against them, he thought he was able to compete with the companies in which they were proposing to invest, as is his case today, he was under a duty to inform them before they could effect such an investment. It was not reasonable for him to think that the Original Investors [meaning those to whom the side letter had been addressed] who remained would have restrained such competition. It was not reasonable for him to think that the claimant companies would have restrained such competition. . . . This is an estoppel put forward by the Claimants to demolish a defence of no privity of contract."