Posted: February 20th, 2017

As a sole proprietor, Seymour conducted a highly lucrative business making and delivering pizzas to the affluent residential areas abutting the local university.

As a sole proprietor, Seymour conducted a highly lucrative business making and delivering pizzas to the affluent residential areas abutting the local university.   In June, Seymour sold his business to Talbot for an exorbitant sum.  A clause in their agreement stipulated that for two years after the sale Seymour would not conduct a similar business within five kilometres of the business premises.   In July, in the name of Better Pizzas Pty. Ltd., a company proposed to be incorporated by him, Seymour leased premises situated next door to Talbot from Lance   In August, Better Pizzas Pty. Ltd. was incorporated with Seymour being employed as Managing Director.  Seymour was the sole shareholder in the company.   From the premises leased from Lance, the company conducted a pizza delivery business in direct competition with Talbot.    Seymour has now received claims against him personally, from Talbot, demanding that he discontinue the pizza operations of Better Pizzas Pty. Ltd., from Lance demanding unpaid rent and from local suppliers seeking payment for ingredients supplied to Better Pizzas Pty. Ltd.   Advise Seymour.