Koko signs a covenant not to compete as part of a sale of her ongoing medical equipment business to Laurel Valley Medico, Inc., in exchange for a bonus payment. If the covenant is reasonable, it will most likely be enforceable by

Question

Quizplus · Accepted Answer

A covenant not to compete is a contract in which one party agrees not to compete with the other party in a particular business or profession for a specified period of time and within a specified geographic area. Such covenants are generally enforceable if they are reasonable in scope and duration. In this case, the covenant not to compete is part of a sale of an ongoing business, and it is likely to be reasonable if it is designed to protect the buyer's investment in the business.

Koko Signs a Covenant Not to Compete as Part of a Sale