The Purpose of a Valid Restraint of Trade Clause in a Contract

question 16

Multiple Choice

The purpose of a valid restraint of trade clause in a contract for the sale of a business is:

• A)to allow other traders to become aware of the change in ownership.
• B)to ensure the public knows of the change in ownership of the business.
• C)to set an area and a time limit in which the buyer can start another business.
• D)to reasonably protect the goodwill of the business.
• E)all of the above purposes.

---

Definitions:

Intrapersonal

Relating to or existing within the individual self or mind.

Interpersonal

Relating to relationships or communication between people.

Primary Process Thinking

A mode of thought processing that is irrational, driven by the unconscious, and characterized by a focus on immediate gratification.

Atemporal

Lacking a temporal dimension; not bound by time.