Why are contracts prohibiting competition with a buyer of a business or an employer generally assignable with the sale of the business?
A) To protect the goodwill of the business
B) To protect the employees from losing their jobs
C) To protect the interest of the public
D) To protect wage earners from unwisely impoverishing themselves

Question

Quizplus · Accepted Answer

Contracts not to compete with a buyer of a business or an employer are generally assignable with the sale of the business. The purpose of such contracts is to protect the goodwill of the business (the value of the business as a going concern), an asset that can be sold with the business.

Why Are Contracts Prohibiting Competition with a Buyer of a Business