Question

Marilyn sells her highly successful travel agency to Adelle. In the sales contract, Marilyn agrees never to open a travel agency in the United States. Which of the following best describes this contract clause?a. Binding as fair protection.b. Unenforceable as a violation of public policy.c. Valid as a reasonable restraint on trade.d. Void as an illegal violation of a statute.

Answer 1

Answer:B. Unenforceable as a violation of public policy.

Explanation: The contract which Marilyn entered with the buyer of her firm is Unenforceable as a violation of public policy. Under Normal public policy no one should be Prevented from going into any business once it is Legal and was done According to the laws of the land. In a capitalist Economy like the United States of America, private ownership of Businesses is encourage,if Marilyn finally opens a new travel agency,it will not be enforceable by the law to prevent her or stop her Business.