Claudia sells her highly successful hair salon to Carl.In the sales contract,Claudia agrees never to open a hair salon in the state.Which of the following best describes this contract clause?

Question

Quizplus · Accepted Answer

This contract clause is an unenforceable restraint of trade contrary to public policy, as it restricts Claudia's ability to work and earn a living in her chosen profession within the state. Non-compete clauses may be valid if they are reasonable in scope and duration, but this clause appears to be overly broad and restrictive.

Claudia Sells Her Highly Successful Hair Salon to Carl