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Covenants not to compete are often contained in contracts concerning the sale of an ongoing business and enable the seller to sell and the purchaser
Covenants not to compete are often contained in contracts concerning the sale of an ongoing business and
- enable the seller to sell and the purchaser to buy the "goodwill" and "reputation" of an ongoing business.
- are illegal because they restrict competition and limit choices for consumers.
- are not evaluated based on reasonableness even though restrictive covenants in employment contracts are evaluated based on reasonableness
- Cannot be reformed by courts if the parties' intentions are clear'
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