On the 1st of March 2020 "Happy Liquor Store", Swakopmund, was sold to a new owner, Mr. Hoffmann. The purchase price is N$ 250 000, inclusive of the fixtures and fittings, liquor licence and goodwill of the business. At the time of sale, the main business of "Happy Liquor Store" was the selling of liquor. In the contract of purchase and sale the following clause was included: "The SELLER hereby undertakes and guarantees in favour of the PURCHASER that for a period of 3 (three) years after the effective date, that he shall not in any way, collectively or individually, either as principal, agent, partner, representative, shareholder, director, employee, consultant, advisor, financer, or in any other capacity, directly or indirectly be associated with or concerned with, interested or engaged in or interest themselves in any firm, business, company undertaking or other association of persons which carries on the business of a Bottle Store in the Municipal area of Swakopmund or which in any way competes with a business as constituted at the effective date, except insofar as the SELLER may be employed by the PURCHASER and for purposes of such employment only." Approximately one year after the effective date of the aforementioned sale, the seller opened a shop called "Jamaican Inn" and started selling imported liquor products in the centre of the town of Swakopmund. You are approached by Mr. Hoffmann for legal advice. He specifically wants to know whether there is a way to close down "Jamaican Inn".

Discuss the legal concept and consequences thereof.(10 marks)