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Elements of a Contract
Suppose that the Fabulous Hotel hires you as head chef under a two-year employment contract. After two years, another hotel wants to hire you. However, in the original employment contract you signed with the Fabulous Hotel, the following paragraph appears:
"The below-signed agrees not to work as a chef for another hotel in the same metropolitan area for a period of two years after leaving our employ."
1. Describe and analyze the five elements of a contract that must exist for this agreement to be enforceable.
2. Explain why this contract is governed by common law or the Uniform Commercial Code (UCC).
3. Examine at least two circumstances in which this non-compete agreement would be unenforceable.
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Explain the following components of contract law in 3 - 5 lines for each.
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Find out the amount of net income earned during the year. The owner did not invest any additional assets in the business during the year and made no withdrawals.
Indicate whether each of the following statements is true or false and give the reason (a) A firm should stop expanding output after reaching diminishing returns.
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