Business Law and Competition
Jan opens a sandwich shop across the street from a sandwich shop run by Amy. Amy is disturbed by this competition, and she agrees to pay Jan $5000, in exchange for Jan's promise to quit her business and not to engage in a similar business within a ten-mile radius of Amy's business. Is this contract legal and enforceable? Why or why not? If the agreement is not enforceable, how might Jan and Amy restructure it to increase its changes of being legal?
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The contract between Jan and Amy appears to be legal because it contains two necessary elements (that may vary amongst states and countries, however). According to Nolo, "Most contracts only need to contain two elements to be legally valid:
? All parties must be in agreement (after an offer has been made by one party and accepted by the other).
? Something of value must be exchanged -- such as ...
Solution Summary
This solution of 248 words explains the legal conditions of the contract between Jan and Amy and explains the characteristics of employment contracts. An example is given of a restructured statement for legal purposes. Reference used is included.