General Billposting Co Ltd v Atkinson [1909] AC 118

Facts

The employee manager had been terminated by the company in deliberate disregard of the terms of the contract’  in such a manner as to show a desire not to longer be bound by the contract. After having his claim for wrongful termination upheld in court, the manager went on to establish a new career for himself in the private sector. His initial service contract had a stipulation that limited his ability to participate in business activity within a certain region for a period of two years after the conclusion of his employment with the organisation. The employer filed an action against him for violating the condition that restricted his ability to engage in other businesses.

Held

The claim made by the employer was rejected. The company had, in effect, repudiated the contract, and the employee 'was thereupon justified in rescinding the contract and treating himself as absolved from the further performance of it on his part' in order to no longer be bound by the restrictive trade covenant which the employers were seeking to enforce.