Exam 10: Contract Impediments

When Mohammed was hired by Pomico,Inc.,he signed the following agreement,"Upon termination of my employment with Pomico,I agree not to work for a competing company within 30 miles of Pomico's headquarters for one year." This agreement,important to protecting secret information developed in the employer's business,is:

In January,Alex promised to pay Y-K Inc.$5,000 if it would refrain from filing suit against him on a breach of contract action.Y-K agreed and accepted a $5,000 check from Alex.Which of the following statements is correct?

Agreeing not to open a competing business could be consideration.

Which of the following promises ordinarily must be in writing to be enforceable?

Marty,a 16-year-old,contracts with Cream-of-the-Crop Cycles to buy an $8,000 motorcycle. -Marty agrees to make monthly payments until the purchase price plus interest are paid in full.Which of the following is correct?

What elements are necessary for an offer to be valid? Give two examples of nonoffers.

Consideration can be a promise or an act.

Barb has been a children's day care provider for several years in the small town of Sallton.She has decided to give it all up and move to the big city for excitement and adventure.She sells her business to Ken,agreeing not to open a competing business within five miles of Sallton for a period of nine months.After five months of the big city life,Barb is broke and moves back to Sallton.She opens a small day care business.Ken sues on the noncompete clause.What is the most likely result?

Ryan,a minor,contracted to sell his auto to Ed,a 28-year-old.Ryan later refused to complete the sale.If Ed sues to enforce the contract,Ed will: