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Law

Business Law Covenants Not to Compete

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Business Law Covenants Not to Compete

The covenant is enforceable against the Defendant. A legal non-compete clause should meet certain parameters. For instance, the time restrictions should be reasonable- the reasonableness varies between different industries. Courts have found one year restrictions unreasonable for technology-based industries, and two year restrictions reasonable for marketing and manufacturing industries (Trigueros). The geographical scope should be reasonable- it should be limited to the area where the office is located. The employee should be provided with adequate consideration as compensation for agreeing to the non-compete clause. The plaintiff’s non-compete clause is valid because it meets most of the requirements of a non-compete clause. The clause covers a reasonable geographical scope, and the time restriction also makes sense.

Exculpatory Clause

The general rule for exculpatory clauses is that they should be reasonable. The clause should be conspicuous- in bold, capital letters, and in a different colour. The wording should not be ambiguous and easy to understand, and it should relate to a specific theory of liability. The clause should also state the unequivocal intention of the parties (Izzi). NASCAR and the Daytona Speedway protected themselves from any negligence law suit by incorporating the exculpatory clause at the back of the ticket. The clause was easy to understand and it related specifically to claims of negligence. NASCAR and the Daytona Speedway stated the intention of incorporating the exculpatory clause behind the ticket. The injured fans do not have a successful claim against the Daytona Speedway and NASCAR.

Unconscionable Contracts

An unconscionable contract is not a legal contract in court. The contract favours only one party and presents an unfair contractual relationship. Legal contracts are enforceable and valid when both sides benefit from the transaction. The contract should not present a financial imbalance, benefitting one party at the expense of another (Wong). Emergency Products Inc. took advantage of New York’s desperation and multiplied the normal price for Personal Protective Equipment by 25 times. In this case, the contract benefits the company more than New York hence it is unenforceable. New York will win the case against Emergency Products Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Works Cited

Izzi, Matthew. ‘’Exculpatory Clauses.’’ Legal Match, Legal Match, 19 April 2018.            www.legalmatch.com/law-library/article/exculpatory-clauses.html

Trigueros, Alezah. ‘’Protecting Your Business with a Non-Compete Covenant.’’ Legal      Match, Legal Match, 17 June 2018. www.legalmatch.com/law-library/article/non-      compete-covenant-lawyers.html

Wong, Belle. ‘’What Makes a Contract Unconscionable?’’ Legal Zoom, Legal Zoom,        December 2019. www.legalzoom.com/articles/what-makes-a-contract-unconscionable

 

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