An agreement in restraint of trade will NOT be struck down if it is unreasonable in terms of:
A) its effect on the public interest
B) the breadth of activities restricted
C) geographic limitations
D) consideration paid for it
E) its duration

Question

Quizplus · Accepted Answer

Consideration is an essential element of a contract, including agreements in restraint of trade. Therefore, if consideration is paid for the agreement, it is unlikely to be struck down on the grounds of being unreasonable. However, A, B, C, and E are all possible grounds for finding an agreement in restraint of trade to be unreasonable and therefore unenforceable.

An Agreement in Restraint of Trade Will NOT Be Struck