63233 – Question 1Indulgence Aesthetics Clinic Pte Ltd (“IAC”)

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Assignment Details:
Pte Ltd (“IAC”) is a that specialises in aestheticmedicine, an extensively broad term for medical specialties that focus on improving cosmeticappearance, whether on the hair, face or body. They have a one-stop clinic located at OrchardRoad, called “IAC ORCHARD”, where customers would visit to receive various medicalaesthetic treatments with the aid of medical-grade equipment.Angela is a dermatologist who has been trained in England, and who has worked and livedthere for 10 years. Because of her overseas training and experience, she was employed as anaesthetic doctor at IAC ORCHARD. There are two other aesthetic doctors practising at IACORCHARD.Angela proved to be a very popular aesthetic doctor who enjoyed great rapport with her clientsat IAC ORCHARD. Many of these clients trusted Angela implicitly and would procurewhatever treatments Angela recommended, so much so that Angela’s clients accounted for anaverage of 60% of IAC ORCHARD’s monthly income. After working at IAC ORCHARD forthree years, Angela decided to leave IAC ORCHARD and set up a dermatology clinic topractise in dermatology (i.e. the branch of medicine dealing with the skin and its diseases). Shechose to set up this clinic in a shopping mall next to IAC ORCHARD, and she managed toaccomplish this within 3 months of leaving IAC ORCHARD.IAC is not happy with Angela and wants to sue Angela for breach of her employment contract.The provision which is in contention is Clause 14, which is set out below:“In the event that an employee leaves Indulgence Aesthetics Clinic Pte Ltd(IAC), whether by resignation or dismissal, the employee shall not, for a periodof 12 months after such cessation of employment, practise any form of medicinedirectly or indirectly related to aesthetics within a 5-kilometre radius from IACORCHARD, and a 5-kilometre radius from any other new IAC clinic that is setup whether before or after the employee’s cessation of employment at IAC.”(a) Discuss whether IAC is able to enforce Clause 14 against Angela, based on the legalrules relating to restraint of trade.(b) Give two (2) suggestions to IAC on what they do with their employment contracts(between IAC and their aesthetic doctors) to prevent this problem (relating to thepotential non-enforceability of Clause 14 due to the legal rules relating to restraint oftrade) from arising, with brief explanations for your suggestions. Your suggestionsshould be based on contract law principles.

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