1. What are the terms of the non-competition agreement? Be complete. What are bo
ID: 333337 • Letter: 1
Question
1. What are the terms of the non-competition agreement? Be complete. What are both Mason and Davis required to do as part of the contract?
2. Mason sued Davis for violating the non-competition agreement. What were Davis' defenses?
3. What was the result? Who won and why?
DAVIS V. MASON Court of King's Term, 33d George 1, p. 118 11792) CASE SUMMARY Facts: Mason was a surgeon/apothecary in the English the public health to restrict a doctor from practicing his own of Thetford. Davis wished to apprentice himself to profession: If the people needed his service, they should Mason. The two agreed that Davis would work for Mason have it. Finally, he said that his "consideration" was too and learn his profession. They further agreed that if Davis great for this deal. In other words, left Mason's practice, he would not set up establishment within 10 miles of Thetford at any time that value from Mason. within 14 years. Davis promised to pay $200 if he volated Issue: Was the contract too unreasonable to enforce? the agreement not to compete it was unfair that he should pay 8200, because he did not receive anything of a competing Davis began working for Mason in July 1789. In Decision: No. The parties made a reasonable agree- August 1791, Mason dismissed Davis, claiming miscon- ment. Judgment for t duct, though Davis denied it. Davis then established his own practice within 10 miles of Thetford. Mason sued for Reasoning: Both Mason and Davis made promises, and the $200 each expected to benefit from the agreement. Davis stood to Davis admitted promising to pay the money. But he learn a trade, and Mason secured protection from competi- claimed that the agreement should be declared illegal and tion in the future. Davis alleges that the contract was unrea- unenforceable. He argued that 14 years was unreasonably sonable, but how long is too long? How far is too far? This long to restrict him from the town of Thetford, and that 10 line is difficult to draw, and I will not even try. The people miles was too great a distance. (Ten miles in those days of Thetford will suffer no harm because other doctors have ad might take the better part of a day to travel.) He added an the right to practice medicine there without restriction. Davis must pay the $200. ditional policy argument, saying that it was harmful toExplanation / Answer
The terms of the agreement is that if Davis leaves the mason’s practise, he would not set any competing clinic or hospital within 10 miles of Therford town and do not open any established anytime within 14 years. Through this agreement, mason is trying to avoid competition from Davis if anytime he left. If he do this and break the agreement, he have to pay 200 euros as penalty for breach of contract. Later after violating the agreement, David refuses to pay and defences himself by saying that the contract is too unreasonable and illegal and cannot be enforced. 10 miles is too much distance and it is a doctor’s duty to help the public when they hep and doctor’s consultation. Also, he added that 200 euros is too much to pay for the breach of contract as he had not received anything of such value from Mason. Mason will won. Contract is contract. David is legally liable to pay the amount even if it is small or big. David has break the contract and he cannot avoid to pay. His excuses are not acceptable as their already other doctors present in Therford for service. No amount is too big and no distance is too far. If the terms were unacceptable to Davis, he should have informed earlier to Mason at the time of freezing of contract. Now, Davis will pay the money to Mason.
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