Question

Pastor Tom was employed by the First Church for 40 years. On Pastor Tom's retirement there was no adequate pension plan. Two months after the retirement, a wealthy parishioner, in consideration for Pastor Tom's 40 years of faithful service and for being such a sweet man, promised to pay him $500 per month for the rest of his life. This promise is probably not enforceable.
(a) True
(b) Fasle

Answer 1

Answer:

A. True

Explanation:

The two most common settings for legitimate non-competition agreements are the sale of a business and an employment relationship. When a non-compete agreement is ancillary to the sale of a business, it is enforceable if reasonable in time, geographic area, and scope of activity.