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MMLU / An employer and employee had an employment contract that contained an "at will"…

Problem

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question

An employer and employee had an employment contract that contained an "at will" provision allowing either party to terminate the employment upon reasonable notice. One year later, the employer had the employee sign a covenant not to compete for a two-year period after termination. Two years later, the employee quit and went to work for a competitor company. The prior employer sued, asking for a preliminary injunction to enforce the covenant. The employee argued that the covenant was invalid because no consideration passed to her €“ she could be fired at any time and did not receive anything for signing. The employer argued that it provided her with continued employment when it did not have to do so. Does the employer have a legal right to enforce the covenant?

choices

  1. Yes, because the employer's providing of continued employment for a substantial period after signing the covenant is adequate consideration.
  2. Yes, because modification of an existing contract does not require consideration.
  3. Yes, because the courts never question the adequacy of consideration in an agreement.
  4. No, because there was inadequate consideration for the covenant.

subject

professional_law

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Source and history

task_id
96b0485c-084b-52ab-9dc5-bd6c4cd7e6da
task_key
all--test--96b0485c-084b-52ab-9dc5-bd6c4cd7e6da
task_revision_id
1
config / split
all / test

Official source

initial import