Facts: James Scott signed a covenant not to compete when he went to work for Snider Bolt

Question:

Facts: James Scott signed a covenant not to compete when he went to work for Snider Bolt & Screw. The agreement prohibited him from taking a job with a competitor for one year after leaving Snider. Three years later, Mr. Scott quit his job at Snider and immediately went to work for Quality Screw & Nut (QSN).

Snider obtained a temporary restraining order that banned Scott from working at his new job. QSN argued that the covenant not to compete was void for lack of consideration. It asked the court to lift the temporary restraining order. 


Questions:

Did the covenant not to compete lack consideration?

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Business Law and the Legal Environment

ISBN: 978-1337736954

8th edition

Authors: Jeffrey F. Beatty, Susan S. Samuelson, Patricia Sanchez Abril

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