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S, a seller of imitation jewellery, sells his business to B and promises, not to carry on business in imitation jewellery and real jewellery. The agreement is:
- a)Fully valid
- b)Valid with regard to imitation jewellery and void as regards real jewellery
- c)Void with regard to imitation jewellery, and valid as regards real jewellery
- d)Wholly void
Correct answer is option 'A'. Can you explain this answer?
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Most Upvoted Answer
S, a seller of imitation jewellery, sells his business to B and promis...
Explanation:
The given agreement is a restrictive covenant, which means that the seller is restricted from carrying on a similar business after selling his business to the buyer.
Validity of the Agreement:
The agreement is fully valid as it meets the following conditions:
- The agreement is made in connection with the sale of a business - The seller has sold his business of imitation jewellery to the buyer. The restrictive covenant is made in connection with the sale of this business.
- The restriction is reasonable in terms of time and geographical area - The agreement does not specify the time duration or geographical area of the restriction. However, it can be inferred that the restriction is reasonable as it applies only to imitation jewellery and real jewellery.
- The restriction is necessary to protect the goodwill of the business - The restriction is necessary to protect the goodwill of the business as the seller has sold his business of imitation jewellery to the buyer. If the seller carries on a similar business, it may lead to confusion among customers and harm the reputation of the buyer's business.
Therefore, the agreement is fully valid as it meets all the necessary conditions for a restrictive covenant.
The given agreement is a restrictive covenant, which means that the seller is restricted from carrying on a similar business after selling his business to the buyer.
Validity of the Agreement:
The agreement is fully valid as it meets the following conditions:
- The agreement is made in connection with the sale of a business - The seller has sold his business of imitation jewellery to the buyer. The restrictive covenant is made in connection with the sale of this business.
- The restriction is reasonable in terms of time and geographical area - The agreement does not specify the time duration or geographical area of the restriction. However, it can be inferred that the restriction is reasonable as it applies only to imitation jewellery and real jewellery.
- The restriction is necessary to protect the goodwill of the business - The restriction is necessary to protect the goodwill of the business as the seller has sold his business of imitation jewellery to the buyer. If the seller carries on a similar business, it may lead to confusion among customers and harm the reputation of the buyer's business.
Therefore, the agreement is fully valid as it meets all the necessary conditions for a restrictive covenant.
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S, a seller of imitation jewellery, sells his business to B and promis...
Can somebody explain why "b" is correct? Since the consideration in this case is not valid, i thought that the contract is void.
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S, a seller of imitation jewellery, sells his business to B and promises, not to carry on business in imitation jewellery and real jewellery. The agreement is:a)Fully validb)Valid with regard to imitation jewellery and void as regards real jewelleryc)Void with regard to imitation jewellery, and valid as regards real jewelleryd)Wholly voidCorrect answer is option 'A'. Can you explain this answer?
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S, a seller of imitation jewellery, sells his business to B and promises, not to carry on business in imitation jewellery and real jewellery. The agreement is:a)Fully validb)Valid with regard to imitation jewellery and void as regards real jewelleryc)Void with regard to imitation jewellery, and valid as regards real jewelleryd)Wholly voidCorrect answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about S, a seller of imitation jewellery, sells his business to B and promises, not to carry on business in imitation jewellery and real jewellery. The agreement is:a)Fully validb)Valid with regard to imitation jewellery and void as regards real jewelleryc)Void with regard to imitation jewellery, and valid as regards real jewelleryd)Wholly voidCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for S, a seller of imitation jewellery, sells his business to B and promises, not to carry on business in imitation jewellery and real jewellery. The agreement is:a)Fully validb)Valid with regard to imitation jewellery and void as regards real jewelleryc)Void with regard to imitation jewellery, and valid as regards real jewelleryd)Wholly voidCorrect answer is option 'A'. Can you explain this answer?.
S, a seller of imitation jewellery, sells his business to B and promises, not to carry on business in imitation jewellery and real jewellery. The agreement is:a)Fully validb)Valid with regard to imitation jewellery and void as regards real jewelleryc)Void with regard to imitation jewellery, and valid as regards real jewelleryd)Wholly voidCorrect answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about S, a seller of imitation jewellery, sells his business to B and promises, not to carry on business in imitation jewellery and real jewellery. The agreement is:a)Fully validb)Valid with regard to imitation jewellery and void as regards real jewelleryc)Void with regard to imitation jewellery, and valid as regards real jewelleryd)Wholly voidCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for S, a seller of imitation jewellery, sells his business to B and promises, not to carry on business in imitation jewellery and real jewellery. The agreement is:a)Fully validb)Valid with regard to imitation jewellery and void as regards real jewelleryc)Void with regard to imitation jewellery, and valid as regards real jewelleryd)Wholly voidCorrect answer is option 'A'. Can you explain this answer?.
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