Asked by Ayeshah Jones on May 02, 2024
Verified
A court usually will enforce a covenant not to compete provided its restrictions are reasonable.
Covenant Not to Compete
A legal agreement where one party agrees not to enter into or start a similar profession or trade in competition against another party.
Enforce
The act of compelling obedience or compliance with a law, rule, or obligation through legal or authoritative means.
Restrictions
Limitations or conditions placed on actions, activities, or agreements to regulate or control their scope and enforceability.
- Acquire knowledge on the legal validity of clauses within contracts that serve to limit liability and the notion of unconscionability.
Verified Answer
ZK
Zybrea KnightMay 07, 2024
Final Answer :
True
Explanation :
A court will generally enforce a covenant not to compete if its restrictions in terms of duration, geographical area, and scope of activity are reasonable and necessary to protect legitimate business interests.
Learning Objectives
- Acquire knowledge on the legal validity of clauses within contracts that serve to limit liability and the notion of unconscionability.