The advantage arising from the reputation and trade connections of a business, in particular the likelihood that existing customers will continue to patronize it.
Goodwill of a business is an intangible asset; it is the whole advantage of the reputation and connections formed with the customers together with the circumstances making the connection durable. It is that component of the total value of the undertaking which is attributable to the ability of the concern to earn profits over a course of years or in excess of normal amounts because of its reputation, location and other features. ….. [Trego vs. Hunt (1896) AC 7]
The place of business of a firm is not invariably a part of its goodwill. ….. [Peshoton vs. Peerozshaw, PLD 1962 (W.P.) Karachi 293]