Business Law

Elements of a Contract
Suppose that the Fabulous Hotel hires you as head chef under a two-year employment contract. After two years, another hotel wants to hire you. However, in the original employment contract you signed with the Fabulous Hotel, the following paragraph appears:

“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.”

Describe and analyze the five elements of a contract that must exist for this agreement to be enforceable.
Explain why this contract is governed by common law or the Uniform Commercial Code (UCC).
Examine at least two circumstances in which this non-compete agreement would be unenforceable.
Submit a four- to five-page paper (not including title and reference pages).

Solution Preview

A non-competent contract gets made between an employee and employer. The employee agrees to compete with the employer during the term of employment and afterward after ceasing to work for the employer. The agreement is intended to prevent the employer from directly competing with the employer. The contracts are standard in formal employment where an employee may get prohibited from working for a competitor for a defined period.

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