Darren is a certified interior designer with a lucrative client list in the city of Kelsa, situated in the state of Touslon.His business affords him a substantial amount of goodwill from his clients.Darren sells his accounting interior designing business to Glenda.When he sells his business to Glenda, Darren agrees not to open another interior designing firm in the city of Kelsa for a 25-year period.
-What kind of agreement exists between Darren and Glenda in this case?
A)contract in restraint of trade
B)covenant not to compete
C)unconscionable contract
D)quasi-contract

Question

Quizplus · Accepted Answer

The agreement between Darren and Glenda is a covenant not to compete. It is a contractual agreement where one party agrees to refrain from competing with the other party in a particular business or geographical area for a specified period of time. In this case, Darren is prohibited from opening another interior designing firm in the city of Kelsa for 25 years after selling his business to Glenda.

Darren Is a Certified Interior Designer with a Lucrative Client