How would the court approach the question of damages relating to the compact and rotation tire inc. contract? What factors would be considered?
George Smith and Amrita Singh had worked for Canadian Business System, an international computer repair service, for ten years. It therefore came as a surprise when they both received lay-off notices on a Friday afternoon late in December 2020. Both were given severance packages that matched their seniority so they decided that this might be the catalyst to launch their own business repairing computers and related equipment for businesses in their community. Both were single, so no one else would be affected if the business failed. George had graduated from a community college with a diploma in computer technology while Amrita had left high school after grade twelve, having taken several business courses prior to graduating They decided to establish a partnership and to call their firm, Compact Business Systems, closely mimicking a large successful firm in another city called Compaq Business Systems. Since they had no plans to expand their business beyond their own community, they did not believe that the similarity in names would pose a problem. In fact, George and Amrita so admired the colours used in the Compaq Business Systems' logo that they used similar gradient tones of red on all their signage and advertisements. George and Amrita named their premium same day service: "Presidio Service" (a name similar to one already trademarked by Compaq Business Systems) and this became their most popular standard of service outselling their three day "invest service" by a margin of two to one. George and Amrita gave no thought to the non-competition clause they had signed with Canadian when they were hired. All employees of Canadian were required to sign a non- competition covenant stipulating that they would not work for a competitor or start up a competitive business within three years after leaving Canadian Business System. There was no geographic restriction contained in the non-competition clause, as Canadian Business System had customers all over the world. In considering their start up costs, the pair determined that they would need a small shop to conduct their business from, some testing and repair-equipment, a modest inventory of electronic components and a delivery van to pick-up and return equipment they would repair. They would also need to do some advertising in the local newspaper to get their name in front of the public. Pooling their resources they found they had a shortfall in start-up capital of some $50,000 Because neither George nor Amrita owned a home or had any appreciable assets, the bank would not lend them the money without a guarantor. Amrita's Uncle Fred was fairly cease fonde insisting that "this nine as much as he time arenared to the on the hand fu vitthal had!WS