Legal Definitions - disabling restraints

Disabling restraints refer to limitations on the transfer or sale of property. These restraints are sometimes considered void or unenforceable because they go against public policy.

• A clause in a contract that prohibits the sale of a property for a certain period of time may be considered a disabling restraint.
• A provision in a will that requires a beneficiary to keep the inherited property for a certain period of time may also be considered a disabling restraint.

These examples illustrate how disabling restraints can limit the ability of property owners to freely transfer or sell their assets. Such restraints may be deemed unenforceable because they can impede the efficient functioning of markets and hinder economic growth.