Corbin sold his retail clothing business to Austin.The business was located in a small town,and most of the customers lived within a radius of five miles of the clothing shop.As a part of the sale agreement,Corbin agreed not to set up a similar business in competition with Austin for a period of five years or within a radius of five miles of the shop.
-If the restrictive covenant was considered to be unreasonable by the court,the restriction would be amended to make it reasonable.

Question

Quizplus · Accepted Answer

In most jurisdictions, if a court finds a restrictive covenant to be unreasonable, it may choose to either void the covenant entirely or modify it to make it reasonable, depending on the legal principles applicable in that jurisdiction. However, not all courts will amend the covenant; some may simply invalidate it.

Corbin Sold His Retail Clothing Business to Austin