Restrictive Covenants Flashcards
1
Q
Enforcement of Restrictive Covenants
A
Generally enforceable if it:
(1) FURTHERS A LEGITIMATE INTEREST of the ER;
(2) Is REASONABLY TAILORED IN SCOPE of activities, geography, and time
2
Q
Legitimate ER Interests
A
(1) Confidential information
(2) Customer relationships
(3) Investment in EE’s reputation in market
(4) Business Good Will
3
Q
Limitations in Scope
A
Covenant should be NO MORE RESTRICTIVE THAN NECESSARY to protect the legitimate interests at stake
4
Q
Judicial Modification of a Covenant: Blue Pencil States
A
Look to see if provisions are “divisible” and then strike out portion of the covenant that is excessive and enforce what is left
