Betty sells her Clothes Shop to Diane. In the sale agreement, there is a covenant not to compete that prohibits Betty from opening another clothing store within a certain distance. If a court concludes that this restriction is unreasonable, it will most likely

Question

Betty sells her Clothes Shop to Diane. In the sale agreement, there is a covenant not to compete that prohibits Betty from opening another clothing store within a certain distance. If a court concludes that this restriction is unreasonable, it will most likely​

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If a court concludes that the covenant not to compete is unreasonable, it may reform it to make it reasonable, rather than striking down the whole provision or awarding damages. This is because the intention of the provision (to protect the buyer's interests) may still be valid, but the restriction in the provision may be too broad or impose an undue burden on the seller's ability to earn a living.

Betty Sells Her Clothes Shop to Diane