At common law,a clause in an agreement between a purchaser and vendor for the sale and purchase of a business that provides that the vendor will not carry on the same business within a radius of 1500 kilometres of the business being sold
A)is void for public policy.
B)is not reasonable and amounts to a restraint of trade.
C)is perfectly reasonable and will be enforced by the court.
D)is an illegal clause and therefore void.
E)none of the above

Question

Quizplus · Accepted Answer

This type of clause is known as a non-compete clause or a restraint of trade clause. Such clauses are not always enforceable, as they can be seen as an unfair restriction on the seller's ability to work and earn a living. In this case, a radius of 1500 kilometres is an extremely large distance, which further supports the argument that the clause is unreasonable and amounts to a restraint of trade. Therefore, the best answer is B.

At Common Law,a Clause in an Agreement Between a Purchaser