Ragsdale v. Nagle

Citations

• 106 Cal. 332
• 39 P. 628
• 1895 Cal. LEXIS 609

Syllabus

<p>Sale—Goodwill of Business—Searcher of Records—Injunction.— Where a searcher of records engaged in the business of abstracting transferred to others engaged in the same business the personal property used by him in his business, and the goodwill of the business, and covenanted that he would not carry on the business of searcher of records in the county so long as his transferees, or either of them, should carry on a like business therein, one of the transferees engaged in such business is entitled to an injunction to restrain a violation of the contract.</p> <p>Id.—Incorporation of Business.—Where it appears that one of the transferees of the property and goodwill of the business had, prior to the transfer, formed a corporation for the sole purpose of securing funds by placing the stock as collateral, and the entire business of the corporation was carried on by him as an owner and proprietor, without objection by the directors of the corporation, and with their knowledge and consent, the fact that the personal property received at the time of the transfer was turned over to the corporation does not establish that such transferee was out of business at that time, or authorize the vendor of the goodwill to violate his contract.</p> <p>Id.—Restraint of Trade—Contract Beyond Scope of Law.—Where a contract for the sale of a goodwill of a business, and to refrain from carrying on a similar business, goes beyond the scope of the law in certain particulars, it is nevertheless valid in all those particulars in which it falls within the provisions of the law.</p> <p>Id.—Construction of Code—Sale of Goodwill—Business of Abstracting.—Section 1674 of the Civil Code, providing that one who sells the goodwill of a “business” may agree with the buyer to refrain from carrying on a similar “business,” is broad enough to include the business of abstracting.</p>