In: Accounting
For ten years, Sammy owned a garage in Karibib. He
then sold the garage to Fred for N$ 200 000. The contract provided
that for a period of 5 years, Sammy would not be allowed to open a
similar business in Karibib. Two years after Fred had purchased the
garage, Sammy’s boredom gained the upper hand. He started to set up
a new garage in the town of Karibib and advertised that he would
shortly be back in business again.
May Sammy do this? Discuss the applicable legal concept and
consequences thereof.