Suppose that Jack, a restaurant owner who is thinking of retiring and the seller, and Hal and Sophia, his two employees and the buyers, enter into an agreement for the sale/purchase of "Jack's Restaurant" which is long-established on Main St of the town. The sale completes on 1 January 2023. The contract includes a non-competition agreement, for a period of ten years, anywhere in the state which provides that Jack will not compete with Hal and Sophia. A few months later, Jack decides that he will open a new restaurant in the next town, which would be in violation of the non-competition agreement, unless Hal and Sophia agree to pay him an extra $100,000. Hal and Sophia agree, since they do not want to fight. Six months later, however, they still have not paid and Jack opens the new restaurant and sues for the $100.000. Hal and Sophia countersue for breach of contract, citing the non-competition agreement.

1) What is the likely result of Jack's suit for the $100,000. Why? (3 marks) 2. What is the likely result of Hal and Sophia's suit for breach of the non-competition agreement? Why? (7 marks)