Suppose that jack and hal and sophia enter into the agreement for the sale of the restaurant, with jack stating in the agreement that if he feels comfortable with his finances in his retirement, that he will not sell the frozen food in competition with the restaurant. after the sale, the stock market rises considerably, and jack's net worth quadruples. he still decides to sell the frozen food. hal and sophia sue. what is the result?

Question

Business

Kenya Castro

28 February, 03:17

Suppose that jack and hal and sophia enter into the agreement for the sale of the restaurant, with jack stating in the agreement that if he feels comfortable with his finances in his retirement, that he will not sell the frozen food in competition with the restaurant. after the sale, the stock market rises considerably, and jack's net worth quadruples. he still decides to sell the frozen food. hal and sophia sue. what is the result?

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Delaney · Answer 1

The correct answer to this situation would be:

The definite result would be "Jack would win since the promise not to compete was illusory".

Contracts or agreements about not to compete will not be upheld by courts if they place unreasonable burdens on a person's right to earn a living. Especially in this case, the promise was illusory since there was no supporting legal document or contract about the promise not to compete.