Candice hires Otto to work as a tax preparer in Candice\'s tax return business.

Question

Candice hires Otto to work as a tax preparer in Candice's tax return business. The employment contract restricts the ability of Otto to set up a competing business or engage in tax preparation services if Otto leaves Candice's employ. Otto discovers he likes this kind of work and wants to set up his own tax return business. He asks you whether the restrictions in his contract with Candice will be enforceable. You should tell him that

A.restrictive covenants regarding future employment will be enforceable if they're reasonable. B.restrictive covenants regarding future employment will be enforceable if the value of the consideration given for the covenant equals the value of the income loss that would be caused by enforcing the agreement. C.any restriction regarding employment is unenforceable as against public policy. D.any restriction regarding employment will be enforceable as long as there was adequate consideration.

Explanation / Answer

B.restrictive covenants regarding future employment will be enforceable if the value of the consideration given for the covenant equals the value of the income loss that would be caused by enforcing the agreement.

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