Because she was moving to Calgary, Lucy wanted to sell the furniture store that she had created in Edmonton.Chas was interested in buying the business, but he insisted that the contract must include a non-compete clause.Lucy agreed, the contract was created, and Chas became the new owner of the store in Edmonton.A year later, however, he learned that Lucy had opened a new furniture store in Calgary and was doing great business.Chas then sued Lucy for breaking the non-compete clause.Which of the following statements is most likely to be TRUE?

Question

Quizplus · Accepted Answer

Generally, non-compete clauses are enforceable if they are reasonable in terms of the geographical area and the time period that they cover. In this case, the clause would have to be reasonably limited to the Edmonton area and a reasonable length of time. Whether or not Lucy received independent legal advice or special consideration is not relevant to the enforceability of the clause. Option A is incorrect because there is no indication that the process leading up to the contract was defective. Option B is incorrect because non-compete clauses are not necessarily always void.

Because She Was Moving to Calgary, Lucy Wanted to Sell