A restraint that is merely ancillary to a contract may be legal if:
A) it attempts to relieve one party from liability for willful misconduct.
B) its purpose is to restrict trade indefinitely.
C) its purpose is to recover punitive damages.
D) it is designed to protect interests created by the contract.

Question

Quizplus · Accepted Answer

Agreements whose sole purpose is to restrain trade are illegal. However, a restraint that is merely ancillary to a contract may be legal if it is designed to protect interests created by the contract and it is no broader than is reasonably necessary to protect those interests.

A Restraint That Is Merely Ancillary to a Contract May