Claudia sells her highly successful hair salon to Carl. In the sales contract, Claudia agrees never to open a hair salon in the state. Which of the following best describes this contract clause?

A) Void as an illegal violation of a statute.
B) Valid as a reasonable restraint on trade.
C) Unenforceable as a violation of public policy.
D) Binding as fair protection.

Question

Kaylee LaCreta · Accepted Answer

Final Answer : C, Explanation :  This contract clause is likely unenforceable as a violation of public policy because it imposes an unreasonable restriction on Claudia's ability to earn a living in her field by prohibiting her from opening a hair salon anywhere in the state, which is generally considered too broad and restrictive.

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