Legal Question in Civil Litigation in Tennessee

Sale of a business voiding contract

The person I worked for sold her travel agent. I worked there on a commission basis not as an employee. I had a contract with her not to open another agency within the county I live in for 5 years after termation. She was suppose to give me a 60 day notice of termation and did not before she ask for the key to the shop. She owes me a total of $3000+ in commissions on trips that have not yet taken and will not be taken until next July. She said over and over she would pay me commission for these trips. Can I open an agency? I sign a contract and my husband also sign one. But however my Mother did not and she is willing to open the new agency in her name. I would like to open in my own name if it is legal. The question is has the contract been broken by the sale of the agency and the fact that I was not given a 60 day notice? And does this open it up for me to open the new agency?


Asked on 11/26/05, 11:20 am

1 Answer from Attorneys
James R. Becker, Jr. Becker Law Firm

Re: Sale of a business voiding contract

The answer to your question is "maybe." Several factors will have to be addressed in order to give you a more detailed answer. The first is that your noncompete agreement and entire employment contract will have to be examined in its entirety. The next factors will deal with the reasonableness of the restriction and what is sought to be protected. Finally, the whole issue with regards to the sale of the business presents an unanswered question as to what was sold. It may be that when the business was sold, the right to your noncompete was sold also. It may also be that such a sale was not effected.

In short, noncompete issues such as this are very complex and almost invariably require a lawyer to look at the agreement and discuss the factual situation with you. Whether you have us do this or some other firm or lawyer, I would urge you to speak in person with a lawyer about this situation. Our firm handles a lot of noncompete cases, usually representing former employees seeking to open their own business. If you would like to discuss this matter in more detail, I can be contacted at [email protected] to set up a consultation.

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Answered on 11/28/05, 12:19 pm


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