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Book/movie review
22/08/2022
Question 1
Five (5) years ago, Bobby started a custom tailoring business Kelvin Kline Tailoring in Singapore. It specialised in custom-made shirts and suits for men. The business flourished under Bobby and the brand was well-recognised, with a good reputation among its many customers in Singapore.
A year ago, Abigail purchased the business from Bobby. The purchase price included a high premium for the goodwill of the business. She retained and continues to use the name of the business Kelvin Kline Tailoring.
A term of the contract between Abigail and Bobby for the sale and purchase of the business stated that Bobby shall not establish a custom tailoring business that competes, directly or indirectly, with Kelvin Kline Tailoring in Singapore and elsewhere, for a period of 10 years.
Shortly after her purchase of the business, Abigail hired new staff for Kelvin Kline Tailoring. The contracts of employment stated that the employees are prohibited from engaging in tailoring work in Singapore for a period of one (1) year from the date of termination of the employment contract. Charles was one of the new hires who joined the tailoring team at Kelvin Kline Tailoring.
Abigail has just discovered that Bobby had set up a custom tailoring business a few months ago, specialising in ladies corporate wear. To her surprise, she also found out that Charles was planning to resign from the tailoring team at Kelvin Kline Tailoring and join Bobbys new business.
Advise Abigail on whether the above contractual clauses are valid and enforceable against (a) Bobby and (b) Charles. In your analysis, you should identify the nature of the clauses and explain the relevant factor that affects the validity and enforceability of the clauses. (
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The writer is very fast, professional and responded to the review request fast also. Thank you.
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