Asked by Akeim Potter on Jun 25, 2024
Verified
A restrictive covenant imposed as part of a sale of an ongoing business will be enforced even if the restrictions are unreasonable.
Restrictive Covenant
A private restriction on the use of land. If its benefit or obligation passes with the land’s ownership, it is said to “run with the land.”
Ongoing Business
A term referring to a company or enterprise that is actively engaged in business operations without interruption.
- Understand the function of quasi-contracts within the realm of contract law.
- Understand the judicial standards for the applicability of contractual terms concerning damages and remedies.
Verified Answer
YZ
Yidan ZhangJun 30, 2024
Final Answer :
False
Explanation :
A restrictive covenant imposed as part of a sale of an ongoing business will only be enforced if the restrictions are reasonable in terms of duration, geographical area, and scope of activity restricted, to protect the legitimate interests of the buyer.
Learning Objectives
- Understand the function of quasi-contracts within the realm of contract law.
- Understand the judicial standards for the applicability of contractual terms concerning damages and remedies.
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