X sold his retail clothing business to Y. The business was located in a small town, and most of the customers lived within a radius of eight kilometres of the clothing shop. As a part of the sale agreement, X agreed not to set up a similar business in competition with Y for a period of five years or within a radius of eight kilometres 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

Courts do not amend restrictive covenants to make them reasonable; they may either enforce them as they are or declare them void if deemed unreasonable.

X Sold His Retail Clothing Business to Y