First Business Solutions, Inc

question 13

Essay

First Business Solutions, Inc., develops and implements online sales strategies for its clients. First Business hires Gideon to plan and execute an e-commerce strategy for marketing Western Skye Company's products. Gideon signs a contract that includes a clause prohibiting him from competing with First Business during and after the employment. After the plan is formed but before it is implemented, Gideon resigns from First Business's employ and opens a competing business. In First Business's suit against Gideon, what is the most important factor the court should consider in determining whether Gideon should be allowed to compete with First Business?

Understand the concept of contractual capacity and how it applies to minors.

Recognize the legal ability of minors to disaffirm contracts and understand the conditions under which disaffirmance is valid.

Identify the conditions under which a contract can be ratified by a minor and the effects of such ratification.

Differentiate between voidable, void, and unenforceable contracts, especially in regard to minors and individuals lacking capacity.

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Definitions:

Mutual Fund

An investment vehicle made up of a pool of money collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments, and other assets.

Joint Probability

The probability of two or more events happening at the same time.

Equity Loan

A type of loan in which the borrower uses the equity of their home as collateral.

Interest Rate

The percentage of a sum of money charged for its use, often expressed as an annual percentage rate.