Question
Claudia sells her highly successful hair salon in Dallas, TX, which employs a half-dozen hairdressers, to Carl. In the written sales contract, Claudia agrees to
Claudia sells her highly successful hair salon in Dallas, TX, which employs a half-dozen hairdressers, to Carl. In the written sales contract, Claudia agrees to a "covenant not to compete" where she agrees not to open a competing hair salon in Dallas County, TX for a period of one year. Which of the following best describes the covenant not to compete in Claudia and Carl's contract.
Group of answer choices
A. Probably Valid, as both the time and geographical limitations of the agreement are reasonable under the circumstances as described.
B. Probably Invalid, as in Texas covenants not to compete are disfavored and rarely enforced.
C. Probably Invalid as a violation of public policy because the time period of this "covenant not to compete" is unreasonable given the nature of the hairdressing business.
D. Probably Void, unless Claudia agreed to the covenant in a separate writing.
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