Reese contracts to sell a Saucy 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
A)award damages for Reese's complete compliance with the terms.
B)reform the contract to make the distance and time limits reasonable.
C)rescind the contract and require restitution.
D)order specific performance.

Question

Quizplus · Accepted Answer

Courts often find covenants not to compete enforceable if they are reasonable in terms of time, geography, and scope. If a covenant is overly broad or restrictive, a court may choose to reform the contract to impose more reasonable limits rather than invalidating the entire agreement. In this case, if the court finds the hundred-mile radius for ten years to be unreasonable, it is likely to reform the contract to make the distance and time limits reasonable, rather than declaring the agreement illegal.

Reese Contracts to Sell a Saucy Pizza Restaurant to Titian