A was employed by ABC Co. as manager in Metro Manila subject to the condition that if A will be severed from the company, voluntarily or involuntarily, he cannot get involved in any business of the same nature with ABC s business in Metro Manila within a period of six (6) months from severance. Is the stipulation valid?

Question

TuteeHUB · Accepted Answer

NA

TuteeHUB · Answer

The stipulation is not valid because it is contrary to public policy.

TuteeHUB · Answer

The stipulation is not valid because it is contrary to law, as it is a restraint of trade.

TuteeHUB · Answer

The stipulation is valid because of the principle of mutuality of contracts.

TuteeHUB · Answer

The stipulation is valid because the non-involvement clause provides for time and place to prevent unfair competition and advantage.

1.	A was employed by ABC Co. as manager in Metro Manila subject to the condition that if A will be severed from the company, voluntarily or involuntarily, he cannot get involved in any business of the same nature with ABC s business in Metro Manila within a period of six (6) months from severance. Is the stipulation valid?
A.	The stipulation is not valid because it is contrary to public policy.
B.	The stipulation is not valid because it is contrary to law, as it is a restraint of trade.
C.	The stipulation is valid because of the principle of mutuality of contracts.
D.	The stipulation is valid because the non-involvement clause provides for time and place to prevent unfair competition and advantage.
Answer» E.

Discussion

No Comment Found

Related MCQs

Reply to Comment