Brown v. Kling

Citations

• 101 Cal. 295
• 35 P. 995
• 1894 Cal. LEXIS 1029

Syllabus

<p>Contracts—Restraint of Trade—Sale of Goodwill.—Upon the sale of the goodwill of a retail butcher business, a contract not to engage in such business within a radius of five miles from the city where it was carried on, within a period of three years, must be construed as prohibiting such business for the protection of the purchaser in the enjoyment of the business purchased within the space and time limited, and is a valid contract for his protection while so doing.</p> <p>Id.—Validity of Contracts—Legality.—The contracts declared void as in restraint of trade by section 1673 of the Civil Code are not declared unlawful; and where the contract made is not against public policy, and would have been valid at common law, it is not illegal.</p> <p>Id.—Construction of Contract—Statute Part of Contract—Presumption.—The contracting parties are presumed to have had in view the statute upon the subject, and it must be held to enter into and become a part of their contract upon that subject, if the contract can be so construed.</p> <p>ID.—Limitation as to Time.—Whatever difficulty there may be in limiting as to space a contract in restraint of trade, where there is no restriction, it may be limited as to time, so as to be enforced to the extent to which it is limited by the statute, for the protection of the purchaser while engaged in the business within the limited territory.</p> <p>Id.—Damages—Injunction.—Where the contract in restraint of trade is valid, and the complaint states a breach of it, the plaintiff is entitled to an injunction to prevent its violation, even if only nominal damages can be proven.</p>