Why did the Supreme Court of Canada, in 2009, expressly reaffirm that restrictive covenants in the sale of a business are subject to less scrutiny than other applications of restrictive covenants?
A) because the clauses are typically reasonably clear as stated
B) because there is typically a power balance in business transactions
C) because the clauses are typically time limited and less intrusive
D) because the vendor typically receives consideration for goodwill

Question

Quizplus · Accepted Answer

The Supreme Court of Canada reaffirmed that restrictive covenants in the sale of a business are subject to less scrutiny because the vendor typically receives consideration for the goodwill of the business. This is seen as a fair trade-off for the restrictions placed on the vendor's ability to compete in the future. Additionally, the clauses are typically time-limited and less intrusive, further justifying lesser scrutiny.

Why Did the Supreme Court of Canada, in 2009, Expressly