Contract and Business Law
CONTRACT & AGENCY LAW
END-OF-COURSE ASSESSMENT
JULY 2012 PRESENTATION
Submission Date : 08 Sept 2012
Question 1:
Legal issues:
As there are different parts to “Clause 8” in the employment contract which Julia as an employee has signed with Calypso Private Limited, we shall examine four separate legal issues.
The first legal issue is whether Calypso is able to enforce part (a) of Clause 8 which states that Julia shall not be directly or indirectly be engaged in any capacity (whether as an employee, consultant, or director) with any business that is selling all types of sports medication, anywhere in the world.
The second legal issue is whether Calypso is able to enforce part (b) of Clause 8 which states that Julia shall not solicit the business of any person who is or has been a customer of the Company, for the purpose of competing with the businesses of the Company.
The third legal issue is whether Calypso is able to enforce part (c) of Clause 8 which states that Julia shall not entice away any employee of the Company to work for a business that sells sports medication anywhere in the world.
The fourth legal issue is whether Calypso is able to enforce all three sections of Clause 8 (part a, b, and c) for the entire duration of 10 years after the cessation or termination of the employee’s employment with the company.
Legal Principles:
Under law, there are 4 main vitiating factors which may prevent a contract from being enforceable; mainly being Incapacity, Illegality, Misrepresentation and Mistake.1.1
Incapacity refers to the lack of capacity to enter into a contract as the party involved may not have sufficient understanding of the consequences of making the agreement. People who are minors (under 21 years of age in Singapore), of unsound mind or intoxicated are considered to lack capacity to enter into a contract.1.2
Illegality can also make a contract void and unenforceable. There
END-OF-COURSE ASSESSMENT
JULY 2012 PRESENTATION
Submission Date : 08 Sept 2012
Question 1:
Legal issues:
As there are different parts to “Clause 8” in the employment contract which Julia as an employee has signed with Calypso Private Limited, we shall examine four separate legal issues.
The first legal issue is whether Calypso is able to enforce part (a) of Clause 8 which states that Julia shall not be directly or indirectly be engaged in any capacity (whether as an employee, consultant, or director) with any business that is selling all types of sports medication, anywhere in the world.
The second legal issue is whether Calypso is able to enforce part (b) of Clause 8 which states that Julia shall not solicit the business of any person who is or has been a customer of the Company, for the purpose of competing with the businesses of the Company.
The third legal issue is whether Calypso is able to enforce part (c) of Clause 8 which states that Julia shall not entice away any employee of the Company to work for a business that sells sports medication anywhere in the world.
The fourth legal issue is whether Calypso is able to enforce all three sections of Clause 8 (part a, b, and c) for the entire duration of 10 years after the cessation or termination of the employee’s employment with the company.
Legal Principles:
Under law, there are 4 main vitiating factors which may prevent a contract from being enforceable; mainly being Incapacity, Illegality, Misrepresentation and Mistake.1.1
Incapacity refers to the lack of capacity to enter into a contract as the party involved may not have sufficient understanding of the consequences of making the agreement. People who are minors (under 21 years of age in Singapore), of unsound mind or intoxicated are considered to lack capacity to enter into a contract.1.2
Illegality can also make a contract void and unenforceable. There