The contract for sale usually includes a(n)________________,similar to the restrictive covenant placed in an employment contract.
A) agreement not to compete
B) nondisclosure agreement
C) service level agreement
D) arbitration agreement

Question

Quizplus · Accepted Answer

An agreement not to compete is the most common form of restrictive covenant in a contract for sale. This clause prohibits the seller from engaging in similar business activities as the buyer for a predetermined period after the sale. This helps protect the buyer against competition from the seller and preserves the value of the business. The other options listed, such as a nondisclosure agreement, service level agreement, and arbitration agreement, are also commonly found in contracts, but are not necessarily related to the issue of competition between the buyer and seller.

The Contract for Sale Usually Includes A(n)________________,similar to the Restrictive