Practice Question
What is the required duration for a non-competition clause to be valid?
Answer +
C
Step-by-step solutions +
A non-competition clause must meet the following legal standards to be valid:
- **Reasonable duration**: The time frame must not exceed what is necessary to protect the employer’s interests.
- **Reasonable geographical area**: It must not restrict the employee from working in a broad or unrelated area.
- **Reasonable type of employment**: It should pertain only to employment that could reasonably compete with the employer’s business.
These conditions aim to balance the employer’s legitimate business interests with the employee’s right to future employment.
Final Answer: C
- **Reasonable duration**: The time frame must not exceed what is necessary to protect the employer’s interests.
- **Reasonable geographical area**: It must not restrict the employee from working in a broad or unrelated area.
- **Reasonable type of employment**: It should pertain only to employment that could reasonably compete with the employer’s business.
These conditions aim to balance the employer’s legitimate business interests with the employee’s right to future employment.
Final Answer: C