Does the term "goodwill" in the terms of a share and interest clause in a commercial partnership apply to the value of a partner's interest and goodwill in the business?
Ontario, Canada
The following excerpt is from O'Keefe v. Curran, 1888 CanLII 16 (ON CA):
In Austin v. Boys, 2 DeG. & J., 629, under a clause that when a partner retired the other remaining should pay him for his interest and good-will in the business the fair marketable value, he not to practice within a named distance, the Lord Chancellor held that the term “goodwill” associated with the words share and interest must be confined within the limits of the partnership, and that the plaintiff was not entitled to any supposed value of his share beyond it.
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