What is a restrictive covenant? What problems does it try to mitigate?© BrainMass Inc. brainmass.com October 17, 2018, 10:40 am ad1c9bdddf
This solution explains the use of restrictive covenant in Venture Capital. It explains in detail with examples of the use of Restrictive Covenenant.
Legality in Hotel Management
A famous New York City hotel, Hotel Lux, is noted for its food as well as its luxury accommodations. Hotel Lux contracts with a famous chef, Chef Perlee, to become its head chef at $6,000 per month. The contract states that should Perlee leave the employment of Hotel Lux for any reason,he will not work as a chef for any hotel or restaurant in New York, New Jersey, or Pennsylvania for a period of one year. During the first six months of the contract, Hotel Lux heavily advertises Perlee as its head chef,and business at the hotel is excellent. Then a dispute arises between the hotel management and Perlee, and Perlee terminates his employment. One month later, he is hired by a famous New Jersey restaurant just across the New York state line. Hotel Lux learns of Perlee's employment through a large advertisement in a New York City newspaper. It seeks to enjoin (prevent) Perlee from working in that restaurant as a chef for one year. Discuss how successful Hotel Lux will be in its action.View Full Posting Details