: A covenant not to compete

Group of answer choices

a. is usurious.

b. protects the public from unauthorized practitioners of certain professions.

c. is a promise to refrain from competing in business with another.

d. protects the public against actions that threaten the general welfare.

Q2: Air Flo, Inc., and Banyan Grove Apartments enter into an oral contract in which Air Flo agrees to provide air-conditioning and heating maintenance for Banyan Grove’s facilities for two years. This contract is enforceable by

Group of answer choices

a. Air Flo.

b. Banyan Grove.

c. any third party, such as a HVAC supplies provider.

d. none of the choices.

1. c. is a promise to refrain from competing in business with another.

2.  d. none of the choices.

Explanation:

Question 1: T

he Covenant not to compete represents a clause in contract law. It is usually referred to as the non-compete clause or the NCC. The essence of the clause is for a party to the contract to agree not to go into a trade, profession or business that is similar or in competition with the other party in the contract. This is usually taken between an employee (who agrees not to compete) with his/her employer.

Based on the explanation the Answer is C

Question 2:

Two things are involved in this contract. First, the contract is an oral agreement and secondly the performance of the agreement is to take place for more than a year (2 years). As such neither party or a third party can enforce the contract.

drop shippers;