Odina signs a covenant not to compete with her employer, Penultimate Sales Corporation. A court decides that the covenant is overly restrictive. The court will likely:

a. refuse to enforce it unless Penultimate pays a fine to the court. b. enforce it as written so as not to undercut the freedom of contract. c. reform its terms to prevent any undue burden. d. enforce it but evaluate its effects over time.

Question

Aria

Business

20 June, 23:06

Odina signs a covenant not to compete with her employer, Penultimate Sales Corporation. A court decides that the covenant is overly restrictive. The court will likely:

a. refuse to enforce it unless Penultimate pays a fine to the court. b. enforce it as written so as not to undercut the freedom of contract. c. reform its terms to prevent any undue burden. d. enforce it but evaluate its effects over time.

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Mariam Farley · Answer 1

C) reform its terms to prevent any undue burden.

Explanation:

If the court believes that the covenant signed between Odina and her former employer is too restrictive, they may decide to change the terms of the agreement so that Odina doesn't suffer because of the agreement.

A covenant is an agreement or contract signed between two parties that pledges them to do something or not do to something for a specific amount of time. In this case, the covenant pledged Odina not to compete with her former employer, probably because she knows some type of trade secret, or confidential information. But the covenant cannot forbid Odina from working at all, it may only levy some reasonable restrictions. E. g. not going to work for the competition. Odina can be limited by the covenant but not hurt by it.