Asked by Emily Talbot on Jun 28, 2024

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A/an ______ states that the previous business owner will not start or own a similar business within a specific geographic area for a certain amount of time.

A) competition contract
B) closed contract
C) noncompete covenant
D) open covenant

Noncompete Covenant

A legal agreement that restricts one party from entering into or starting a similar profession or trade in competition against another party.

Geographic Area

A specific portion of the Earth's surface defined by natural or man-made boundaries.

Similar Business

Companies or enterprises that offer comparable products or services within the same industry.

  • Appreciate the role and implications of contracts in business transactions, covering agreement, consideration, capacity, and legality.
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RS
Rhyme SpitterJul 03, 2024
Final Answer :
C
Explanation :
A noncompete covenant is an agreement where one party agrees not to enter into or start a similar profession or trade in competition against another party.