IAI Actuarial Core Principles · Business Management · Implied terms, exclusion of liability, contractual remedies and damages

Arvind, a senior actuary, signed a valid employment contract with Zenith Life containing a clause stopping him from working for any competing insurer for 5 years across India after leaving. Zenith also has a separate term barring him from using its confidential pricing models. Arvind resigns and prepares to join a rival, planning to use the pricing models. Which analysis is most accurate?

An injunction may restrain misuse of the confidential pricing models, but the five-year all-India non-compete is likely unenforceable as a restraint of trade under Indian contract law. Protecting confidential information is legitimate, whereas barring a professional from working after leaving employment is generally void.

1. AAn injunction may be sought to restrain misuse of confidential models, while the blanket five-year all-India restraint is likely to be unenforceable as a restraint of tradeCorrect
2. BBoth restraints are enforceable by injunction because the contract was signed voluntarily
3. CNeither can be enforced because injunctions are never available in employment disputes
4. DOnly damages are available for both, since injunctions apply only to property disputes
5. The five-year restraint is enforceable but the confidentiality term is void