Reese contracts to sell a Spicy Pizza restaurant to Titian. As part of the deal, Reese agrees not to open a competing business within a hundred-mile radius for ten years. Reese later sues Titian, alleging that the agreement is illegal. To enforce the covenant not to compete, the court will most likely

Question

Quizplus · Accepted Answer

The court is likely to reform the contract to make the distance and time limits reasonable because the agreement is otherwise valid, but the scope of the agreement may be too broad. Reforming the contract to make the agreement reasonable is generally preferred over completely rescinding the contract. The court is unlikely to award damages as it is difficult to quantify damages in non-competition agreements, and specific performance is not typically ordered in cases involving non-competition agreements.

Reese Contracts to Sell a Spicy Pizza Restaurant to Titian