Suppose that Jack and Sophia and Hal enter into an agreement for the sale of the business without the non-competition agreement. Jack states that he would probably sign the non-competition agreement if they included an extra $100,000. A month later, Hal and Sophia bring Jack $100,000. What is the result? A. Jack cannot change his mind, since he stated that he would probably accept $100,000 additional for the non-competition agreement. B. If Jack does not accept the $100,000, he may not sell the frozen food, but only for a reasonable amount of time. C. If Jack does not accept the $100,000, there is a valid contract for the sale of the business, without a non-competition clause. D. If Jack does not accept the $100,000, there is no valid contract for the sale of the business or for the non-competition agreement.

Question

Business

Charlee Huynh

16 December, 12:10

Suppose that Jack and Sophia and Hal enter into an agreement for the sale of the business without the non-competition agreement. Jack states that he would probably sign the non-competition agreement if they included an extra $100,000. A month later, Hal and Sophia bring Jack $100,000. What is the result? A. Jack cannot change his mind, since he stated that he would probably accept $100,000 additional for the non-competition agreement. B. If Jack does not accept the $100,000, he may not sell the frozen food, but only for a reasonable amount of time. C. If Jack does not accept the $100,000, there is a valid contract for the sale of the business, without a non-competition clause. D. If Jack does not accept the $100,000, there is no valid contract for the sale of the business or for the non-competition agreement.

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Answers (1)

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Aileen Bautista · Answer 1

The answer is: C) If Jack does not accept the $100,000, there is a valid contract for the sale of the business, without a non-competition clause.

Explanation:

Non competition clause (NCC) is a legal contract that binds one party to not work for or start a rival company (in the same trade) that will compete against the other party.

In this case, Jack said he would probably agree to sign a NCC if they paid him $100,000 more, but he never said he would sign for sure the NCC. So Jack can refuse to sign the NCC and reject the extra $100,000. The selling contract would still be valid, it was never stated that if no NCC was signed, then the contract would be dismissed.