Week 3: Week Three (Jul 25 - Jul 31)

There are two components to this week's homework.

A non-compete clause in an employment contract is generally reasonableand enforceableonly to the extent necessary to protect trade secrets, confidential information, or customer lists developed over an extended period.

Write a 1-2 page paper in which you respond to the following questions regarding the non-compete clause:

• In your opinion, should non-compete agreements in employment contracts be legal or illegal? Why?
• To what extent is there equality of bargaining power between the company and the employee with regard to non-compete clauses?
• How might a non-compete clause impact your willingness to accept an offer of employment by another party?

Throughout the life of a contract, there could be many small breaches. A material breach is important enough to defeat an essential purpose of the contract.

Consider the following scenario: Lauries contract to sell her tortilla chip business to Hudson contained a provision that she must continue to work at the business for five years. One year later, she quit. Hudson refused to pay her the amounts still owing under the contract. Laurie alleged that he is liable for the full amount because her breach was not material. Write a 1-2 page paper in which you respond to the following:

• Present the contractual issues presented in the case.
• Outline your opinion with regard to whether or not this was a case of a material breach. Support your opinion.
• Provide three examples of other special considerations that need to be addressed in writing and executing contracts.