A Provision That Restricts the Seller from Competing with the Buyer

Multiple Choice

A provision that restricts the seller from competing with the buyer in a contract for the sale of a business is

A) enforceable if it is reasonable between the parties, which means that it must be limited in time (e.g., one year) but need not be limited in area.
B) enforceable if it is reasonable between the parties and not contrary to public policy.
C) always unenforceable because any attempt to restrict competition is an illegal restraint of trade.
D) fatal to the whole contract, i.e., it causes the whole contract to fail.
E) always enforceable because the parties to a contract have the freedom to contract as they see fit.