Question

Claudia sells her highly successful hair salon to Carl. In the sales contract, Claudia agrees never to open a hair salon in the state. Which of the following best describes this contract clause a. void as illegal primary restraint.

b. valid as a reasonable restraint of trade.

c. unenforceable restraint of trade.

d. binding as fair protection.

Answer 1

Answer:

c. unenforceable restraint of trade.

Explanation:

Valid as a reasonable restraint of trade is what best describes this contract clause. Restraint to trade is any activity that hinders someone from doing normal business without restrictions. Claudia and Carl entered into a contract and if in any case Claudia opens another salon in the state, Carl will lose business and Carl might have a tort against her.