Essay on "Non-Compete Agreement"

Essay 4 pages (1164 words) Sources: 4

[EXCERPT] . . . .

Some states consider the offer of employment as something of value while other states require more, such as additional payment of money. The non-compete agreement must be for a reasonable amount of time and provide a date, usually two or three years from the date of termination. The agreement must contain a defined geographic location, usually the area that surrounds where the employer conducts business that is not too broad. The professional skills of the employees cannot be prevented from use. The employee must be allowed to use their skills in other capacities than the competition of the employer.

3. Common law is a tradition-based set of laws that are judge-made based on previous court decisions (Contracts and the Law). Common law governs contracts, such as employment, leases, and general business contracts. The Uniform Commercial Code (UCC) controls contracts for the sale of goods with a standardized collection of guidelines that govern the law of commercial transactions. Where non-compete agreements are part of employment contracts, they are governed under common law because they do not deal with actual commercial transactions.

4. The non-compete agreement with Fabulous Hotel appears to be completely legal and enforceable accept for defining something of value in return for the agreement. Something of value could be defined in another area of the contract that would make the agreement enforceable in a court of law. If the agreement had not defined "for another hotel," the agreement could be unenforceable. If it had stated the employee was not allowed to work for a competitor, it would not be defined in the contract because where competitors usually provide some kind of restaurant it would include all restaurants, which makes the aspects of the contract too broad and would prevent the employee from using their professional skills. But, where the competitor aspect was defined, it is legally enforceable.

If the agreement did not define the metropolitan area, it could be unenforceable. For example, if the agreement had just stated the employee could not work for another hotel, without defining the geographic area, it would be unenforceable because it would cause the contract to be too broad in scope. Although, where the contract identified a certain area, such as a city or county, it would be enforceable.

The agreement specified "for a period of two years after leaving employ." If the agreement had not made this specification, it would be unenforceable. Or, if the agreement was for a longer period than three years, such as five years, it would be unenforceable because the period would be too long.

Courts will not allow forced unemployment (How Restrictive Can Non-Compete Agreements Be?). If the contract does not specify a reasonable length, the geographic location, or prevents the use of the employee's professional skills, the contract would not be enforceable in a court of law. Non-compete agreements must show a fair presentation on the part of both parties.

Bibliography

Capacity, Legality, Assent, and Form. (n.d.). Retrieved from TAMUCC: http://faculty, tamucc.edu/belzweig/9thChap09.ppt

Contract Consideration. (n.d.). Retrieved from Legal Match: http://www.legalmatch.com/law-library/article/contract-consideration.html

Contracts and the Law. (n.d.). Retrieved from FindLaw: http://smallbusiness.findlaw.com/business-contracts-forms/contracts-and-the-law.html

How Restrictive Can Non-Compete Agreements Be? (n.d.). Retrieved from Lawyers.com: http://labor-employment-law-lawyers.com/employment-contracts/How-Restrictive-Can-Non-Compete-Agreements-Be.html

Offer and Acceptance. (n.d.). Retrieved from 4 Law School: http://www.4lawschool.com/contracts101/offer.htm READ MORE

How to Reference "Non-Compete Agreement" Essay in a Bibliography

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