Contracts
What is a 'non-compete clause' in a Rhode Island real estate purchase agreement for a commercial property?
AA clause preventing the broker from competing for other listings
BA clause where the seller agrees not to open a competing business near the sold property for a specified period✓ Correct
CA clause preventing the buyer from reselling the property
DA clause restricting the buyer's use of the property to non-commercial purposes
Explanation
A non-compete clause in the sale of a business property can restrict the seller from opening a competing business within a certain geographic area or time period. It is common in business sale transactions to protect the buyer's investment.
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