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The Purpose of a Valid Restraint of Trade Clause in a Contract

Question 9

Multiple Choice

The purpose of a valid restraint of trade clause in a contract for the sale of a business is:


A) to allow other traders to become aware of the change in ownership.
B) to ensure the public knows of the change in ownership of the business.
C) to set an area and a time limit in which the buyer can start another business.
D) to reasonably protect the goodwill of the business.
E) all of the above purposes.

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