Restriction Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Restriction, written in plain English, along with examples of how it is used.

What is Restriction?

(n) Restriction is the limitations imposed, in doing any activity, by virtue of a statute, regulation, provisions in the byelaws or similar statues of the concern, or provisions contained in a contract or an agreement between the parties etc.

History and Meaning of Restriction

Restriction is a term used in legal language to describe any limitation that prevents someone from undertaking a particular activity. Restrictions can be imposed by laws, rules and regulations, contractual provisions, and other legal instruments. In many cases, restrictions are used to promote public safety or to protect the interests of different parties.

In the context of business and finance, restrictions may be imposed on a company's financial activities by governing bodies or by lenders who provide financing. These restrictions can limit the company's ability to spend money on specific things or to engage in certain types of conduct.

Examples of Restriction

  1. A state may impose restrictions on the sale of alcoholic beverages, such as prohibiting the sale of alcohol to minors or limiting the hours during which alcohol can be sold.

  2. An employer may impose restrictions on an employee's use of company resources, such as prohibiting the use of company vehicles for personal errands.

  3. A lender may impose restrictions on a borrower's use of loan proceeds, such as requiring that the funds be used for a specific purpose or limiting the amount of money that can be borrowed.

  4. A zoning commission may impose restrictions on how a property can be used, such as prohibiting the construction of a commercial building in a residential area.

  5. A contract may impose restrictions on one party's ability to compete with the other party, such as prohibiting an employee from working for a competitor for a certain period of time after leaving the company.

Legal Terms Similar to Restriction

  1. Prohibition: A legal order that prohibits a particular activity from taking place.

  2. Limitation: A legal restriction on the amount or type of conduct that someone can engage in.

  3. Constraint: A limitation that restricts someone's ability to act freely or according to their own desires.