Chapter 13 - Contract Legality

Hotelluxcontractswithafamouschef

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Unformatted text preview: w A famous NYC hotel, Hotel Lux, is noted for its food as well as its luxury accommodations. Hotel Lux contracts with a famous chef, Chef Perlee, to become its head chef at $6000/month. The contract states that should Perlee leave the employment of Hotel Lux for any reason, he will not work as a chef for any hotel or restaurant in NY, New Jersey, or Pennsylvania for a period of one year. During the first six months of the contract, Hotel Lux substantially advertises Perlee as its head chef, and business at the hotel is excellent. Then a dispute arises between the hotel management and Perlee, and Perlee terminates his employment. One month later, he is hired by a famous New Jersey restaurant just across the NY state line. Hotel Lux learns of Perlee’s employment through a large ad in a NYC newspaper. It seeks to enjoin Perlee from working in that restaurant as a chef for one year. Discuss how successful Hotel Lux will be in its action....
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