Asked by Elizabeth Carney on Jun 17, 2024
Verified
Edward, an engineer, is working on a new design for some highly technical equipment which Martus, Inc. hopes to market within the next five years. The employment agreement between Edward and Martus states that Edward will not go to work for another company in the same business for a period of two years after termination of his employment with Martus, Inc. This agreement is void and unenforceable because, although Martus is a very specialized company, it would make it difficult for Edward to find other employment.
Employment Agreement
A contractual agreement between an employer and employee outlining the terms of employment.
Specialized Company
A business focused on a specific market niche, offering products or services that are not broadly offered by generalist companies.
- Gain insight into the validity of agreements concerning limitations on trade, profession, or business activities.
Verified Answer
RS
Ravneet SinghJun 19, 2024
Final Answer :
False
Explanation :
Non-compete agreements, like the one between Edward and Martus, Inc., are generally enforceable if they are reasonable in scope, geography, and duration, and protect legitimate business interests.
Learning Objectives
- Gain insight into the validity of agreements concerning limitations on trade, profession, or business activities.