He commenced soliciting former customers whom he had called on for Leigh and obtained some of them as customers for Ajax. Will Leigh be able to enforce the provisions of the contract? Why or why not?
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Charles Leigh, engaged in the industrial laundry business in Central City, employed Tim Close, previously employed in the home laundry business, as a route salesperson on July 1. Leigh rents linens and industrial uniforms to commercial customers; the soiled linens and uniforms are picked up at regular intervals by route drivers and replaced with clean ones. Every employee is assigned a list of customers. The contract of employment stated that in consideration of being employed, upon termination of his employment, Close would not “directly or indirectly engage in the linen supply business or any competitive business within Central City, Illinois, for a period of one year from the date when his employment under this contract ceases.” On May 10 of the following year, Leigh terminated Close’s employment for valid reasons. Thereafter, Close accepted employment with Ajax Linen Service, a direct competitor of Leigh in Central City. He commenced soliciting former customers whom he had called on for Leigh and obtained some of them as customers for Ajax. Will Leigh be able to enforce the provisions of the contract? Why or why not? |
Explanation
Individual T is not supposed to be involved in any kind of competitive business of Individual L for one year after termination. But Individual T has gotten involved in a competitive business and has also tried to poach the customers of Individual L to the new organization, which clearly is a breach of contract on the part of Individual T. Individual T is liable toward Individual L.
Verified Answer
The final verdict of the court is going to be in the favor of Individual L since the contract has been breached by Individual T.
