John enters an agreement to buy H&S Diner from Henry and Sally for $500,000. The contract has a non-compete agreement th

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answerhappygod
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John enters an agreement to buy H&S Diner from Henry and Sally for $500,000. The contract has a non-compete agreement th

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John enters an agreement to buy H&S Diner from Henry and
Sally for $500,000. The contract has a non-compete agreement that
lasts for 8 years, that states that John cannot sell frozen food
anywhere in the state. Two months after the sale has completed,
John decides he wants to sell frozen food, violating the
non-compete agreement. He tells Henry and Sally they must pay him
an additional $50,000 if they do not want him to sell frozen food.
Henry and Sally agree to pay him this extra $50,000 because they
are worried of litigation. Five months later, they still have not
paid John however, and he begins selling the frozen good and John
sues for the $50,000. Henry and Sally countersue John for breaching
the contract by not honoring the non-compete clause.
a. What will the result be of John’s suit for $50,000 and
why
b. What will the result of Henry and Sally’s suit for breaching
the non-compete clause and why
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