Carl Wilton has just sold his Mexican restaurant to Jerry Felt. The restaurant is located in Costa Brava, a city of about 300,000 people. In their sales agreement, a clause provides that Carl will not open another restaurant in Costa Brava for a period of five years. The clause is:

Question

Quizplus · Accepted Answer

A covenant not to compete is a clause in a contract where one party agrees not to enter into or start a similar profession or trade in competition against another party.

Carl Wilton Has Just Sold His Mexican Restaurant to Jerry