Agreements in restraint of trade are defined as contracts or agreements between two or more parties that aim to restrict competition in a particular industry or market. In simpler terms, these agreements are designed to limit the free flow of goods or services in the market and prevent new entrants from competing.

The rationale behind agreements in restraint of trade is to protect the interests of the parties involved, including their market share, profits, and intellectual property. However, such agreements can also be anti-competitive and harmful to consumers.

In most countries, agreements in restraint of trade are regulated and restricted by competition laws. The reason for this is that such agreements can potentially harm the economy by restricting trade, limiting innovation, and increasing prices for consumers.

To determine whether an agreement is in restraint of trade, courts usually apply a `rule of reason` test. This test involves evaluating the agreement`s overall impact on competition and whether the benefits to the parties involved outweigh the potential harm to consumers.

Examples of agreements in restraint of trade include non-compete clauses in employment contracts, exclusive distributorship agreements, and price-fixing agreements between competitors. These types of agreements are generally considered illegal because they harm competition and limit customer choice.

In conclusion, agreements in restraint of trade are designed to protect the interests of parties involved. However, they can also be harmful to consumers and anti-competitive. Therefore, it is vital to regulate and restrict such agreements through competition laws. As a professional, it is important to ensure that articles on topics related to agreements in restraint of trade are well-researched and informative, incorporating the most recent developments in the area. This ensures that readers receive accurate and up-to-date information on this important topic.