Lucy wants to sell her furniture store in Edmonton before she moves to Calgary in six months.You offer to buy the establishment under one condition;the contract must include a restrictive covenant in the form of a non-compete clause.Lucy agrees and signs the contract making you the new owner of a furniture store.A year later,a mutual friend informs you that Lucy is operating a furniture store in Calgary and it is performing very well.When you hear this,you decide to take Lucy to court for breaching the restrictive covenant of the contract.Which statement is true?
A) Unless there is unfairness in the bargaining process,the restrictive covenant will be upheld as courts want to enforce the concept of freedom to contract between parties.
B) The restrictive covenant will be struck down as all restrictive covenants are a restraint of trade and are against public policy.
C) All restrictive covenants are presumed to be against public policy unless they can be shown to be reasonable.
D) All restrictive covenants are presumed to be against public policy unless they can be shown to be geographically reasonable.
E) All restrictive covenants are presumed to be fair unless they can be shown to be unreasonable.
Correct Answer:
Verified
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