Question

Which of the following is required for the covenant not to compete to be enforceable?

1) The assistance of an attorney and approved by a court of law
2) Approved by a court of law and reasonable in scope.
3) Part of a business sale and reasonable in scope.
4) The registration of the due-on-sale agreement.

Answer 1

To be enforceable, a covenant not to compete must be reasonable in scope and approved by a court of law. The assistance of an attorney is not always required, but it can be beneficial.

Step-by-step explanation:

In order for a covenant not to compete to be enforceable, it must meet certain requirements. One of these requirements is that it must be reasonable in scope. This means that the restriction placed on the party bound by the covenant should not be overly broad or unfair. Another requirement is that the covenant must be approved by a court of law. This ensures that the agreement is reviewed by a legal authority to determine its validity. The assistance of an attorney is not always required for a covenant not to compete to be enforceable, but having the help of an attorney can ensure that the agreement is properly drafted and adheres to legal standards.