Demonstrate well developed written proficiency

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Reference no: EM13493679

Born-Free Pte Ltd ("Born-Free") is a construction company that specialises in environmentally friendly residential projects. It is struggling to survive in a competitive market. One of its cost-cutting measures was to retrench staff. Benny has been working with Born-Free for one year. Born-Free's management decided to terminate the services of Benny. The following agreement was reached between Born-Free Pte Ltd and Benny during a meeting:

(a) Benny would vacate his position as a sales and marketing manager at a specified date;

(b) Benny would not enter into competition, directly or indirectly, with Born-Free for a period of 6 months from the date of termination; and

(c) Benny shall not join any construction company, including construction companies that specialise in environmentally friendly residential projects, in Singapore or anywhere else during this 6-month period.

After leaving Born-Free, Benny incorporated a company, Live-Again Pte Ltd, which successfully tendered for various contracts in competition with Born-Free. When approached by Born-Free about his actions, Benny denied that statement (b) above constituted a legally binding promise not to compete with Born-Free.

Born-Free has come to you for advice. It wants Benny, through Live-Again Pte Ltd, to immediately stop tendering for contracts that are in competition with Born-Free.

Explain whether the terms of the agreement are enforceable and if yes, to what extent. Apply case law and legislations to identify the remedies available to Born-Free in the event that the courts held that there was a breach by Benny. Demonstrate well developed written proficiency.

Reference no: EM13493679

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