Asked by
keturah Dixon
on Dec 18, 2024
Verified
X sold his retail clothing business to Y. The business was located in a small town, and most of the customers lived within a radius of eight kilometres of the clothing shop. As a part of the sale agreement, X agreed not to set up a similar business in competition with Y for a period of five years or within a radius of eight kilometres of the shop. If the restrictive covenant was considered to be unreasonable by the court, the restriction would be amended to make it reasonable.
Restrictive Covenant
A clause in a deed or lease that limits what the owner of the property can do with the property.
Unreasonable
Refers to actions, decisions, or policies that are not based on or showing a concern for fairness, logic, or reason.
Amended
Having been altered or modified from its original form, typically to correct errors or incorporate changes.
- Comprehend the principles governing the legality and enforceability of restrictive covenants.
Verified Answer
EG
Learning Objectives
- Comprehend the principles governing the legality and enforceability of restrictive covenants.