

McqMate
Q. |
A was employed by ABC Co. as manager in Metro Manila subject to the condition that if A will be severed from the company, voluntarily or involuntarily, he cannot get involved in any business of the same nature with ABC’s business in Metro Manila within a period of six (6) months from severance. Is the stipulation valid? |
A. | The stipulation is not valid because it is contrary to public policy. |
B. | The stipulation is not valid because it is contrary to law, as it is a restraint of trade. |
C. | The stipulation is valid because of the principle of mutuality of contracts. |
D. | The stipulation is valid because the non-involvement clause provides for time and place to prevent unfair competition and advantage. |
Answer» D. The stipulation is valid because the non-involvement clause provides for time and place to prevent unfair competition and advantage. |
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