Legal Question in Business Law in Michigan
if a contract has a not compete provision in it but the other party fails to pay money owed on time ( 2 or more months late and counting.) is that provision enforcable ?
2 Answers from Attorneys
It is. They are separate and distinct claims. Tim Klisz. Kliszlaw.com
As a Franchise Attorney I think there's a bit more to this issue than the other attorney answer. First of it, it depends on the wording of the entire contract, which needs to be examined. Second, covenants not to compete are generally disfavored by courts and are therefore strictly construed. If the party seeking to enforce the noncompete is in breach of payment that is the consideration for the noncompete (in other words "I pay you not to compete with me"), a court may not enforce the noncompete. Consult with a good business or franchise attorney in your area for specific advice.
Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.
Franchise Foundations, a Professional Corporation
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