Question

An agreement between a business seller and buyer, in which the seller agrees not to open a competing business within a specific time period and geographic area, is called a: Nondisclosure statement Restrictive covenant Bulk transfer Letter of intent

Answer 1

Answer:

Restrictive covenant

Explanation:

The restriction on the use of land to preserve the enjoyment and value of the adjoining land is called restrictive covenant.

They are binding legal obligation that are written into deed  of a property seller, the covenants can be compel or simple and penalty is levied against the buyers who do not obey them.

e.g A restrictive covenant on a residential property can prevent any business activities from being conducted on that property, it prevents the occupant from running a having a home office or running a home based business.

Answer 2

Answer:

restrictive covenant.

Explanation:

Restrictive covenant -

It refers to a type of agreement between two business partners , where one of the partner is disabled to start business with any other person for some specific period of time , is referred to as restrictive covenant .

Not following the condition can lead to pay penalties .

Hence , from the given information of the question ,

The correct answer is  restrictive covenant .