Tyrell has a tax service and accounting business in Redwood City. He decides to move to Center City, which is 150 miles away and sells his accounting practice to Able and Baker, a CPA firm. In the sales contract, he agrees that he will refrain from practicing accounting anywhere within a 20-mile radius of Redwood City for a period of two years. However, on weekends he returns to his house in Redwood City, and when clients call him, he meets with them in his home. The sales agreement: Ois being violated by Tyrell. O is invalid, because it is an illegal restraint of trade. O is illegal, because it is a violation of public policy. O will be divided into an enforceable, valid portion and an unenforceable, invalid portion, which is the time provision, because the two-year period is too long.
Tyrell has a tax service and accounting business in Redwood City. He decides to move to Center City, which is 150 miles away and sells his accounting practice to Able and Baker, a CPA firm. In the sales contract, he agrees that he will refrain from practicing accounting anywhere within a 20-mile radius of Redwood City for a period of two years. However, on weekends he returns to his house in Redwood City, and when clients call him, he meets with them in his home. The sales agreement: Ois being violated by Tyrell. O is invalid, because it is an illegal restraint of trade. O is illegal, because it is a violation of public policy. O will be divided into an enforceable, valid portion and an unenforceable, invalid portion, which is the time provision, because the two-year period is too long.
Chapter6: Business Expenses
Section: Chapter Questions
Problem 24P
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Question
![Tyrell has a tax service and accounting business in Redwood City. He decides to
move to Center City, which is 150 miles away and sells his accounting practice to
Able and Baker, a CPA firm. In the sales contract, he agrees that he will refrain
from practicing accounting anywhere within a 20-mile radius of Redwood City for
a period of two years. However, on weekends he returns to his house in Redwood
City, and when clients call him, he meets with them in his home. The sales
agreement:
Ois being violated by Tyrell.
O is invalid, because it is an illegal restraint of trade.
O is illegal, because it is a violation of public policy.
O will be divided into an enforceable, valid portion and an unenforceable, invalid
portion, which is the time provision, because the two-year period is too long.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc9942a50-cc28-4371-98cb-a35371ca0910%2F928ad102-056c-43c5-9b04-2c8d176b5909%2F249nbpl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Tyrell has a tax service and accounting business in Redwood City. He decides to
move to Center City, which is 150 miles away and sells his accounting practice to
Able and Baker, a CPA firm. In the sales contract, he agrees that he will refrain
from practicing accounting anywhere within a 20-mile radius of Redwood City for
a period of two years. However, on weekends he returns to his house in Redwood
City, and when clients call him, he meets with them in his home. The sales
agreement:
Ois being violated by Tyrell.
O is invalid, because it is an illegal restraint of trade.
O is illegal, because it is a violation of public policy.
O will be divided into an enforceable, valid portion and an unenforceable, invalid
portion, which is the time provision, because the two-year period is too long.
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