Question

During the term of this contract you will not perform for the purpose of making phonograph records for any person, firm, or corporation other than us. During a period of five (5) years after the expiration of this contract, you will not perform any selection recorded hereunder for any other person, firm, or corporation in the world or throughout the universe, for the purpose of making phonograph records.

Is this a protection or an option?
A) A contractual option
B) A legal requirement
C) A contractual protection
D) A non-compete clause

Answer 1

A non-compete clause is a contractual protection that prohibits a person from competing against a company or engaging in certain activities that could be detrimental to the company's interests during the term of the contract and for a specified period of time after the contract expires.

Step-by-step explanation:

The provision mentioned in the question is known as a non-compete clause.

A non-compete clause is a contractual protection that prohibits a person from competing against a company or engaging in certain activities that could be detrimental to the company's interests during the term of the contract and for a specified period of time after the contract expires. In this case, the clause restricts the artist from performing for the purpose of making phonograph records for any other person, firm, or corporation during the term of the contract, as well as for five years after the contract ends.

This clause is designed to protect the company's interests and maintain their exclusive rights to the artist's recordings.