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Contract Legal & Enforceable

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Jan works in a sandwich shop run by Amy. Amy makes Jan sign a noncompete contract that states if Jan quits, she is not to engage in a similar business within a three state radius of Amy's business for 5 years. 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 chances of being legal?

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https://brainmass.com/business/business-law/contract-legal-enforceable-418076

Solution Preview

This contract is not legal and is not enforceable (and no Judge would enforce it) because it makes it almost impossible for Jan to make a living ...

Solution Summary

Jan works in a sandwich shop run by Amy. Amy makes Jan sign a noncompete contract that states if Jan quits, she is not to engage in a similar business within a three state radius of Amy's business for 5 years. 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 chances of being legal?

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