“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.”
1. Examine at least two circumstances in which this non-compete agreement would be unenforceable.
Contracts of employment are generally given to prospective employees who have applied for a position or type of sub-contractor with a company. The employment contract will be the agreement between the company and employer to the prospective employees. The contract will spell out the rights to the employee, responsibilities, duties, conditions, and terms of that they will be governed.
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There are three parts of a contract that will be examined to get a basic understanding of how they work and what is meant by the verbiage used. The first part will be the five elements that a contract should have to make it valid for execution.
An offer is an expression of willingness to contract on certain terms, made with the intention that it shall become binding as soon as it is accepted by the person to whom it is addressed, the “offeree” (G.H. Tretel, The Law of Contract, 10th edn, p.8). The basic contract for the chef and the present hotel is the two parties involved in the offer. This is generally the case with a contract that it involves just two parties the offeror and, the offeree.
Acceptance means that the offeree has agreed to the terms and conditions of the contract that has been extended to him/her. In the 21st century there are many forms of communication that are considered binding besides a signature on a contract for legal acceptance. “Although a signature is the most reliable way of obtaining consent, it is not the only method. As long as the parties write something which a reasonable person could perceive as acceptance, the email contract will be enforceable” (legal match law-library).
Someone can reject or not accept the offer and then it is considered to be void.
Consideration is what benefit(s) has been promised from the offeror in the contract to the offeree. In return the offeree gives the offeror what is required from him/her. This is like a when you purchase a car and the dealership says we will give you this car and in return you give us the money.
“The fourth element of a valid contract is capacity. This relates to the mental state of the parties to the contract. A party who lacks capacity does not have the ability to understand the consequences of entering into a contract” (Seaquist, G. & Coulter, K. 2012 9.2). Legal minors automatically are considered to not have capacity when it comes to contracts.
The final element is legality that requires all components in a contract be binding and legal on their own separate merit so when they all come together it makes the contract legal.
With these steps are solidified in the contract the issue becomes which governing law this contract should go under. Should the contract be governed under “common law” or Uniform Commercial Code”? The Uniform Commercial Code covers the sales of goods and purchases between business merchants, for example a company enters into a contract to purchase copying equipment with a vender. Common law handles the hiring of personnel and all types of employees. Since the...