Where a Stipulation in Restraint of Trade Is Part of the Sale

question 64

True/False

Where a stipulation in restraint of trade is part of the sale of a business, it may be valid if the restraint is within reasonable limitations to protect the business's goodwill.

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Definitions:

Depreciable Asset

An asset which loses value over time due to wear and tear or obsolescence and can be written off as an expense over its useful life for tax and accounting purposes.

Selling Price

The amount of money a buyer pays to acquire a product or service from a seller.

Book Value

The value of a company's assets minus its liabilities, often used to assess its financial health or compare its market value.

Loss On Sale

An economic condition wherein the selling price of an asset is less than its carrying value, resulting in a financial loss.