Legal Question in Business Law in Indiana
non-compete clause
Our church has separate facility for future daycare use. Until we raise money to start our daycare, we rented the facility to another daycare provider. We were going to start our daycare in the main church; however, the lady renting our facility states she has a non-compete clause which she will enforce even though she hasn't paid rent for several months. Her daycare begins with 5yr olds thru fifth grade. We were going to begin with 6wk olds thru 4yr old. Can we move forward without being sued for non-compete
1 Answer from Attorneys
Re: non-compete clause
The fact that she hasn't paid rent might be grounds to rescind the contract and thus void the non-compete. Non-competes are strictly construed so notwithstanding whether you can rescind the contract, it is possible thatthe non-compete is not enforceable. You need to have an attorney review the document.
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