Ricky agrees to sell his Sunrise Breakfast Café to Tia. As part of the deal, Ricky signs a covenant not to open a competing business within a hundred-mile radius for ten years. If this covenant is later determined to be unreasonable, the appropriate remedy is most likely

Question

Quizplus · Accepted Answer

If the court determines that the covenant not to open a competing business within a hundred-mile radius for ten years is unreasonable, it may be reformed. Reformation would involve modifying the covenant to make it reasonable rather than invalidating it. This would be the appropriate remedy as it protects the interests of both parties involved in the sale of the business. Damages, rescission, and specific performance would not be appropriate remedies in this case as they do not address the specific issue of the covenant being unreasonable.

Ricky Agrees to Sell His Sunrise Breakfast Café to Tia