Which clause restricts the ability of the employee to terminate the employment contract early or to take a comparable job with a competitor elsewhere?
A) Liquidated damages
B) Promissory estoppel
C) Restrictive covenant (covenant not to compete)
D) Punitive employment

Question

Quizplus · Accepted Answer

Restrictive covenant (covenant not to compete) is a clause that restricts the ability of the employee to terminate the employment contract early or to take a comparable job with a competitor elsewhere. It is also known as a non-compete clause. Liquidated damages refers to a predetermined amount of damages that will be paid by the breaching party in case of a breach of contract. Promissory estoppel refers to a legal principle where a promise is enforceable even though there is no consideration. Punitive employment is not a recognized legal term.

Which Clause Restricts the Ability of the Employee to Terminate