Asked by Kaleigh LaPierre on Jul 05, 2024
Verified
For a noncompetition clause to be enforceable,the clause must serve a legitimate business purpose.
Noncompetition Clause
A provision in a contract that restricts one party from entering into or starting a similar profession or trade in competition against another party.
Legitimate Business Purpose
A reasonable, lawful reason for engaging in a particular business activity or decision.
- Absorb information concerning the enforceability and legal considerations of noncompetition agreements.
Verified Answer
JD
joseph donaldJul 11, 2024
Final Answer :
True
Explanation :
For a noncompetition clause to be enforceable,the clause must serve a legitimate business purpose.This means that the person protected by the clause must have some justifiable interest-such as an interest in protecting goodwill or trade secrets-that is to be protected by the noncompetition clause.
Learning Objectives
- Absorb information concerning the enforceability and legal considerations of noncompetition agreements.
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