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An example of a contractual covenant is a non-compete agreement. Examples of common covenants in property law include agreements not to build a fence or agreements to maintain a shared driveway.
Even if a restrictive covenant is found to be overly broad, a Kentucky judge can use his or her blue pencil authority to re-form the terms of the restrictive covenant at issue to make it enforceable.
Covenants not to compete in conjunction with the sale of a business are generally enforceable if which of the following conditions are met? Provided the covenant not to compete is reasonable with regard time and location, the covenant will be enforceable.
To be sure, if a covenant not to compete is found to be unreasonable in time or geographic area, the court may convert the terms into reasonable ones and then enforce the reformed contract.
In a sale of business contract, a covenant not to compete prevents the party selling their business from creating a second business which would compete with the one sold for a specified period of time. The legality of non-compete agreements differs from state to state.
In Kentucky, courts enforce reasonable noncompetes that balance an employer's investment in the training and skills of the employee as well as that person's knowledge of the employer's internal business information, with the employee's right to continue their career building on their work experience and industry ...
Although governed by individual state laws, common factors include whether the employer has a legitimate interest to protect; whether the geographic scope prevents the worker from making a living; the length of restriction; whether the agreement prevents workers from doing different work from what they are doing; and ...
Reasonableness of the Restraint In deciding whether to enforce the covenant, courts will consider whether, based on the specific circumstances, the covenant is reasonably necessary to protect the employer's legitimate business interests, or whether the covenant is too broad and unduly burdensome on the employee.