Larry has the largest pizza business in the city.He learns that Henry is thinking of opening a competing pizza and pasta delivery business.Larry gives Henry $25,000 to not open his proposed business in the same city.Which statement is correct?
A)The contract is voidable at Larry's option.
B)The contract is void for lack of consideration.
C)The contract is illegal and void.
D)The contract is enforceable.

Question

Quizplus · Accepted Answer

This contract is illegal and void due to being against public policy. The agreement essentially amounts to a bribe or payment to prevent competition, which unfairly restricts trade and violates antitrust laws. Larry cannot lawfully prevent Henry from entering the pizza and pasta delivery market in the city.

Larry Has the Largest Pizza Business in the City