In the scenario above, the contract is governed by common law because it the offer did not involve the sale of any goods. Uniform Commercial Code directs the sale of goods (Seaquist, 2012). Fabulous Hotel’s contract with the head chef is legally sound, there are circumstances where it may be …show more content…
One way the contract could be void is if the length of time the chef could not take a position in the local area was unreasonable, then the court can through it out. For example, if the clause read “The below-signed agrees to not work as a chef for another hotel in Nevada and four surrounding states of Nevada for a period of twenty years after leaving our employment.” The length of time and distance involved are unreasonable in the example and many courts will invalidate the arrangement (Parrish, 2014). Another way for the contract to be unenforceable is if the company discovers the chef did not have the required United States work permit that is a listed as a mandatory requirement to work at the Fabulous Hotel. This is fraud in the inducement. The hotel entered into the contract because they relied on the chef to have his work permit (Seaquist, 2012). There is an old saying that the biggest lie ever is “I have read and agree to the terms.” This is mistake many make when dealing with business