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Agreements to Defeat Competitive Bidding A bid is an offerto buy or sell goods or services at a stated price. Laws often requiregovernments to construct public works or buy goods and servicesthrough competitive bidding . In this process, rivals submit bids for aproject. The firm with the lowest qualified bid wins the contract. If,before bids are made, the bidders get together and agree not to bidlower than a certain price, then they are not bidding fairly. The agreementsand contracts are not enforceable.Example 8. Central City planned to build three new parks. Onlythree contractors were available to bid on the projects. Local lawrequired the city government to open the contracts to competitivebidding and to accept the lowest bid for each park project. Beforethe bidding began, however, the contractors met secretly. Theyfixed the bids so that each of them would be awarded one of thepark projects. This agreement among the contractors is void.Figure 9.3RESTRICTIVE EMPLOYMENT COVENANTIn consideration of my being employed by HawthorneSavings and Loan, I, Vytataus Angelitus, the undersigned,hereby agree that when I leave the employment of Hawthorne,regardless of the reason I leave, I will not compete withHawthorne, or its assigns or successors.The phrase "NOT COMPETE" stated above means that Iwill not directly or indirectly work as a loan officer for asavings and loan association or any other financial institutionthat is in competition with Hawthorne.RESTRICTIVEEMPLOYMENTCOVENANTSSome restrictive employmentcovenants are upheldby the courts. Would thisrestrictive employmentcovenant be upheld bythe court?This restrictive employment covenant will extend for aradius of five miles from the present location of Hawthorne at6802 East 185th Street, Cleveland, Ohio. This covenant will bein effect for six months, beginning on the date of thetermination of employment.Signed this second of March, 20––.EmployeeChapter 9: Legality 197