The contract for the sale of a business 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

The agreement not to compete is a common clause included in the contract for the sale of a business. It is intended to prevent the seller from starting a competing business in the same industry or geographic location, which could harm the buyer's business. This clause is similar to the restrictive covenant found in an employment contract, which prohibits an employee from working for a competitor after leaving the employer.

The Contract for the Sale of a Business Usually Includes