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My name isXXXXX going to try and help.
Your instincts are spot on. I cant think of any court that would enforce that agreement.
Agreements may be deemed unenforceable if a court finds that they are unreasonable in terms of duration, geographic scope and the location and nature of the employer's clientele.
Examples of non-compete agreements that Utah courts have found to be reasonable include:
What about the "valuable consideration"?
With any contractual arrangement, both parties must be giving and receiving something of value, also known as consideration. Utah courts have determined that the offer of initial or continued employment is sufficient consideration or benefit to the employee in exchange for agreeing to not compete with the employer should the employment relationship terminate.
But even without the considertion, the contract is not enforceable.
I'm not quite clear on that. Ken wasn't employed. He was supposed to get paid something only if and when there was a profit after they produced something. Most of the time, they would make a video and there wasn't any "profit" because of the expenses of the company, ie rent, utilities, etc.
Even as an independant contractor, the noncompete is flat out not enforceable.
So you are saying it isn't enforceable because the time and location are too extreme?
Way too extreme.
Time and geographic scope are the most imprtant factors.
So I am okay working with a band that I worked with while I was working with TyJen's?
Absolutely, the other party can complaim all they want but fact is, it is an unenforceable contract.
Clearly not enforceable.
Like the contract does not exist.
Can I assume that if any part of the contract is voidable, that it is all voidable? There isn't a clause that says otherwise. (Kind of like Obamacare)
Correct. In regard to noncompete and any restrictions, the contract has effect what so ever.
you mean NO effect?
This has been helpful. Thank you very much.
No problem. Any other concerns you would like to address?
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One thing more. The clients that they did some lyric videos for were from other countries. Most of their contacts they got on the internet so is the geographic location still a factor?
Geography has to be reasonable. A nation wide agreement would not be enforceable. A worldwide agreement certainly will not be enforceable.
okay, I will stop worrying about it. Thanks.
Basically, the party that drafted the contract drafted terms that are not enforcebale, time and geography.
Follow up anytime.
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