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past consideration

Page history last edited by abogado 4 years, 6 months ago

Chapter 13 Past Consideration

Access Organics v. Hernandez & Mike Vandenbeek

  1. 1.       The contract(non-compete )agreement under which one party (Andy Hernandez) agrees not to initiate a similar profession or trade in competition against his employer(Access Organics) given in relevant part: For good thought (consideration) and as an inducement for Access Organics (the Company)to employ Andy Hernandez, the signee of this contract as employee hereby consents not to directly or indirectly engage in competency with the business of the company and its descendants during the period of employment and two years after the termination of it.


  1. 2.       The District Court granted the temporary restraining order Access Organics which stated: “Andy Hernandez and Mike Vandenbeek (Defendants) are prohibited from owning, operating and managing any business involved in the same trade as Access Organics, Inc.


  1. 3.       Access Organics disputes that Hernandez’s salary and continued employment provided enough consideration. § 28-2801, MCA says that “any benefit in discussion or agreed to be discussed upon the promisor by any other person, to which the promisor is not legally entitled, or any unreasonable feeling suffered or agreed to be suffered by this person, other than such as he, is at the time of agreement legally bound to suffer as persuasion to the promisor is a good consideration for a promise”


  1. 4.       Consideration is present if the employee promises to agree to not to compete against his employer’s business during or after his employment (non-compete agreement) at the time of hiring during the negotiations prior to being hired, the employee and the employer get involved in an exchange of bargains or offers: The employer obtains the desired non-compete agreement, and in return, the employee gets hired.


  1. 5.       However, Hernandez agreed to sign more than four months after accepting his first employment offer from Access Organics. The record clearly shows that Hernandez did not sign the agreement as part of Access Organic’s initial negotiations with him before employment.


  1. 6.       A noncompete agreement entered int after.



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