Question
Saula was in huge financial distress therefore he sold his news agency business to the buyer he could find for $125,000 which included $25,000 for
Saula was in huge financial distress therefore he sold his news agency business to the buyer he could find for $125,000 which included $25,000 for the goodwill in business.
The company that had bought his business included a clause in the contract that stated: "The vendor shall not commence or purchase another news agency business for the next 20 years and within 50km of the existing news agency".
Two years later, Saula is financially stable and want to invest in a news agency business because he is competent in that kind of business. When Saula applied for registration of the business, the buyer of his business wants to take out an injunction against Saula.
Advise Saula, whether he can register and commence his business or not.
Use IRAC method to answer the question with reference to two relevant case law.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started