Business Law Urgent help needed!!!?

M

Moni

New member
Ramon is employed as managing director of Star Ltd whose main object is to retail office equipment. His contract of employment contains a clause which states that in the event of his leaving the employment of Star Ltd he will not solicit their customers for a period of two years. He resigns his employment and together with his wife Sara forms a new company, Equip Ltd, whose main object is also retailing office equipment. Pierre is a salesman employed by Equip Ltd. He is given customer lists by Ramon and immediately begins soliciting Star Ltd’s customers.

In order to raise cash for his new business, Ramon enters into a contract to sell his house to Helga for £240,000. Pierre, who has always admired the house approaches Ramon and makes him an offer for £250,000. Ramon transfers the ownership of the house to Equip Ltd, and on behalf of the company enters negotiations to sell the house to Pierre.

Advise Star Ltd and Helga on any actions they may take.
 
Star Ltd could sue Ramon for distributing the "customer list". Although the non compete clause was in Ramon's employment contract, his usage (handing it to one of his agents/employees) will constitute the same thing. He will still be liable for damages.

Helga can take Ramon to court for "breach of contract". Although he transfered his ownership to Equip Ltd, that does not void the initial contract with Helga. Destruction of the house (ie act of God) would but not a mere transfer of ownership, especially when he is the owner of Equip Ltd. If a bank had a lien on the house and took it, that would be a different story.
 
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