2. Contract Vitiating Factors

Required:

Advise on the effect of the above clause in her agreement in this situation.

Chris is employed, in Auckland, as a salesperson by Scrooge Shoes Ltd. Her job is to visit shoe retailers in the North Island and to persuade them to stock Scrooge's products. Since the shoe sale business is very competitive Scrooge Ltd included the following clause in Chris's employment agreement.

Cl... The employee will not, for a period of 12 months from leaving Scrooge Ltd's employment, be employed as a salesperson, or in any other capacity, by any other firm engaged in the manufacture or sale of shoes anywhere in New Zealand.

Chris has been offered a position as manager of a large retail shoe store in Christchurch (in the South Island) and she wishes to begin her new job immediately. Chris leaves Scrooge Ltd after giving 1 months' notice as required under the agreement with Scrooge Shoes Ltd.