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Enforcing contracts and non-compete agreements

BUS670 ASHFORD UNIVERSITY

Suppose that the Fabulous Hotel hires you as head chef under a two-year employment contract. After two years, another hotel wants to hire you. However, in the original employment contract you signed with the Fabulous Hotel, the following paragraph appears:

"The below-signed agrees not to work as a chef for another hotel in the same metropolitan area for a period of two years after leaving our employ."
1. Describe and analyze the five elements of a contract that must exist for this agreement to be enforceable.
2. Explain why this contract is governed by common law or the Uniform Commercial Code (UCC).
3. Examine at least two circumstances in which this non-compete agreement would be unenforceable.

Submit a four- to five-page paper (not including title and reference pages). Your paper must be formatted according to APA style as outlined in the approved APA style guide and must cite three scholarly sources in addition to the textbook.

Solution Preview

In accordance with BrainMass rules this is not a hand in ready paper but only guidelines.
Step 1
There are five elements of a contract that must exist for this agreement to be enforceable. The first element that must be present in this contract is an offer by Fabulous Hotel. This offer must mention the salary and emoluments and the position that is being offered. The second element is that this offer must be accepted by you. Since, this is a written contract you must sign the acceptance and give it to Fabulous Hotel. What is pertinent in this case is that you have taken cognizance of the non-compete clause. You have understood that when you leave Fabulous Hotel, you will not be allowed to work as chef in the same metropolitan area for a period of two years. The point is that you have understood this condition and have signed the agreement. The third element of this contract is that both the parties must have legal competency. You have legal competence to enter into the contract but the person who has made you the offer must have the competency to represent the hotel in making the offer. From a different perspective this means that you are of sound mind, a major, and are capable of entering into a contract. You have not entered the contract because of undue pressure or coercion (Holland. J, 2013). There is no fraud or misrepresentation. You have perfectly understood the condition before entering into a contract. Similarly, the person with whom you have entered the contract has been authorized by Fabulous Hotel to enter into an ...

Solution Summary

This solution explains elements of a non-compete contract. The sources used are also included in the solution.

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