Ron owned and operated a pet shop in the city of Winnipeg that specialized in the sale of exotic birds. Grant offered to purchase Ron's Pet Shop for $20,000
One term of the purchase contract required Ron not to open another pet shop or deal in the business of buying and selling exotic birds within the province of Manitoba for a period of 10 years. Which of the following statements is TRUE?
A) A contract containing a clause of this nature is presumed to be against public policy and unenforceable.
B) The presumption of unenforceability for a clause of this nature can be overturned if the restrictions put on Ron are proven to be against city by-laws.
C) Ron must have some special skill or represent major potential competition to new business – and the restrictions must be reasonable – for the presumption that the clause is against public policy to be overturned.
D) Both A and B
E) Both A and C
E
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