Asked by Angela Fuquay on Jul 18, 2024

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Reese contracts to sell a Saucy Pizza restaurant to Titian. As part of the deal, Reese agrees not to open a competing business within a hundred-mile radius for ten years. Reese later sues Titian, alleging that the agreement is illegal. To enforce the covenant not to compete, the court will most likely

A) award damages for Reese's complete compliance with the terms.
B) reform the contract to make the distance and time limits reasonable.
C) rescind the contract and require restitution.
D) order specific performance.

Covenant Not to Compete

A formal agreement where one party commits to refraining from engaging in or initiating a comparable business or occupation in rivalry with another party.

Illegal Agreement

A contract or arrangement that is forbidden by law because it involves actions or terms that violate legal statutes.

Competing Business

A company that offers similar products or services as another business within the same market or industry.

  • Comprehend the notion and judicial consequences of specific performance within the realm of contract law.
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Verified Answer

AA
Arsany AboudaJul 21, 2024
Final Answer :
B
Explanation :
Courts often find covenants not to compete enforceable if they are reasonable in terms of time, geography, and scope. If a covenant is overly broad or restrictive, a court may choose to reform the contract to impose more reasonable limits rather than invalidating the entire agreement. In this case, if the court finds the hundred-mile radius for ten years to be unreasonable, it is likely to reform the contract to make the distance and time limits reasonable, rather than declaring the agreement illegal.