Question
Question. Chris Betws a gym that he agrees to sell to Fit Finley Benoit agrees to stay on for three year to help with the
Question. Chris Betws a gym that he agrees to sell to Fit Finley Benoit agrees to stay on for three year
to help with the changeover, Among other clauses, the sales agreement contains the following
1. Chris Benoit agrees that he will not be involved directly or indirectly in the business of a gym or a similar business that is carried om within five kilometres of the present establishment for five years after leaving the employ of Fit Finley
2. Benoit agrees not to make any claim against the Worken' Compensation Fund while in the employ of Finley
3. This agreement is conditional on Fit Finley's obtaining a zoning change to allow the running of a restaurant on part of the gym premises
Finley decides that he was out of the deal, and so he does not apply for the zoning change.
a) What is the legal term for the first clause?
b) What are the three legal criteria that will be applied to determine whether the first clause
enforceable, and with what result?
c) is the clause not to claim against the Worker's Compensation Fund enforceable?
d) Can Finley rely on the fact that the condition was not satisfied to get out of the deal?
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