Question: 7 - 2 Is an agreement not to compete enforceable? Cooper sold Blackwell Construction Material Company, including its goodwill, to Stewart. The sale agreement contained
Is an agreement not to compete enforceable?
Cooper sold Blackwell Construction Material Company, including its goodwill, to Stewart. The sale agreement contained a "covenant not to compete" that prohibited Cooper from entering the same business within miles of Blackwell headquarters for years. A year later, Stewart sold the company to Gidden. Cooper then started a similar business in apparent violation of the covenant not to compete and Gidden asked the court to issue an injunction prohibiting Cooper from competing with him.
Cooper claimed that the covenant was personal to Stewart and for other reasons not enforceable.
How should decide?
Solar Panel Contract Breached?
On March Ben, a property owner, and Carl, a licensed contractor, executed a written agreement containing the following provisions:
Carl agrees to construct a residence using solar panels and related electrical equipment manufactured by Sun Company Sun and to complete construction before Thanksgiving.
Ben agrees to pay Carl $ upon completion of construction.
Ben and Carl agree that this written agreement contains the full statement of their agreement.
Ben and Carl agree that this written agreement may not be modified except upon written consent of both parties.
Prior to execution of the written agreement, Ben told Carl i that Carl had to use Sun solar panels and related electrical equipment because Sun was owned by Ben's brother, and ii that Carl had to complete construction prior to Thanksgiving. Carl assured Ben that he would comply.
In August, Ben began to doubt whether Carl would complete construction prior to Thanksgiving; Ben offered Carl a $ bonus if Carl would assure completion, and Carl accepted and gave his assurance. To complete construction prior to Thanksgiving, Carl had to use solar panels and related electrical equipment of equal grade manufactured by one of Sun's competitors because Sun was temporarily out of stock. Carl completed construction prior to Thanksgiving. Ben, however, has refused to pay Carl anything.
What are Carl's rights and remedies against Ben? Discuss.
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