Asked by diksha pathria on May 26, 2024
Verified
An agreement in connection with the sale of a business that prohibits the seller from engaging in the same or similar business for a period of twenty-five years would be unreasonable and unenforceable.
Engaging
Captivating or holding someone's interest or attention.
Unenforceable
A term that describes a contract or clause that cannot be legally enforced or compelled in court.
- Acquire knowledge about the enforceability of limitations in agreements within the scope of trade, profession, or business dealings.
Verified Answer
DM
Desak Made Prathivi WulandariMay 29, 2024
Final Answer :
True
Explanation :
Non-compete agreements must be reasonable in scope, geography, and duration to be enforceable. A period of twenty-five years is generally considered excessive and unreasonable, making such an agreement likely unenforceable.
Learning Objectives
- Acquire knowledge about the enforceability of limitations in agreements within the scope of trade, profession, or business dealings.