Jones Entered into a Contract for the Sale of His

question 111

Multiple Choice

Jones entered into a contract for the sale of his barber shop to Harry Cutter.One of the terms of the contract was that Jones would never open up a similar business within 50 kilometres of the location of the barber shop being sold.About two weeks after the sale,Cutter noticed a new barber shop opening across the street with brand-new facilities and equipment.When he learned that the owner of the new shop was the very Jones who sold the business to him,he sued for breach of contract.Which of the following correctly indicates the legal position of the parties?

• A) If the 50 kilometres is determined to be reasonable, this restriction will be valid and Harry Cutter will succeed.
• B) Any such attempt to restrict competition is illegal and, no matter how reasonable the terms are, the provision will be void.
• C) The term is too broad and would be found to be void or non-enforceable.
• D) The whole contract for the sale of the business is void because of the illegal term, and therefore Harry will be able to force Jones to take his barber shop back and return the purchase price.
• E) These terms are enforceable no matter how unreasonable because they are part of the bargain struck.

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Definitions:

Evolution

The process by which different kinds of living organisms are thought to have developed and diversified from earlier forms during the history of the earth.

Obsession

An obsession is a persistent, intrusive, and unwanted thought, urge, or image that causes significant anxiety or distress, often seen in disorders like obsessive-compulsive disorder (OCD).

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, evokes a conditioned response.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally triggers a reflexive response without prior learning.