Week 3 Bus 670

No Compete Clause and Contracts

“The below-signed agrees not to work as a chef for another hotel in the same metropolitan area for a period of two years after leaving our employ.” This statement is seen in many contracts. It is commonly referred to as the non-compete clause. It is meant to protect company’s methods and ability to compete in a region. Leaving a business with all the knowledge of customer accounts and methodology to would for a neighboring competitor is seen as giving the competitor an unfair advantage over its neighbor. This example is related to being a chef that has finished a two year contract with a hotel and is looking to move on a different hotel. The line stated above restricts the options that the chef has when selecting a new employer. There are some things that could make the statement not legally enforceable. To better understand if this statement is enforceable or not going over the steps of a contact and exploring what laws govern such a statement needed.

The first part of the contracting process is the offer. This is when two parties involved in a contract, the offeror, the party that is proposing the offer, and the offeree, the party with the authority to accept or reject the offer, come together for a mutual goal. It can be determined who the offeror is and whom is the offeree by looking are what party is offering a good, or compensation in exchange for offering a good, or compensation. An example of this is this is if Jim would like to buy a dog from Bob. Jim goes up to Bob and stays I will give you 200$ for the dog. Jim has made an offer and is the offeror and Bob the offeree. Bob thinks about it and asks Jim for 250$ for the dog. This is what is called a counter offer and switches the positions of the two men making Bob the offeror and Jim the offeree. A similar example is if Bob was selling the dog with a posted price of 250$ and Jim seeing the price and that the dog is available to buy. This is also a contract...