A restrictive covenant in a contract for the sale of a business will be upheld if it is reasonable in time even if it extends beyond the areas where the business conducts business.

Question

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Restrictive covenants in a contract for the sale of a business will be upheld by the court if they are "reasonable" in time and geographical area. What is reasonable is determined by a careful examination of the business being sold.

A Restrictive Covenant in a Contract for the Sale of a Business