American Contract Law for a Global Age, 2017a

After signing the film contract, Actress tells manager she will not pay manager
any part of the income received from the Deep Six series and film because he was
operating as an unlicensed talent agent and therefore her contract with him is void.
She immediately signs a new management contract with a new manager. Manager
sues, claiming his commissions for all of her television and film earnings for the fiveyear
period.
Problem 16.2
Employee, a veterinarian licensed in Texas, enters into a contract of
employment on with Employer. Also a licensed veterinarian, Employer owns and
operates two animal clinics in the Dallas-Fort Worth (DFW) area. Employer hires
Employee to manage and to provide veterinary services at his Pethouse Pet Clinic in
Arlington, Texas. (Employer himself manages a second animal clinic in Plano, Texas,
about 40 miles away.) At the time Employee is hired, the Pethouse clinic has been in
operation for 15 years and has a large and stable customer base. Employee has moved
from Amarillo—where his own practice had not been terribly successful—to take the
job. The contract provides Employee with a base salary, plus a bonus based on the
profitability of the Pethouse Pet Clinic. The contract provides that either party may
terminate the agreement upon 120 days’ notice to the other party. The written
employment contract also contains the following provisions:
Voluntary Termination. (a) Employee agrees that upon his voluntary
termination of the Employee-Employer relationship, Employee will not practice
veterinary medicine in Arlington, Texas or within a ten (10) mile radius of the
Pethouse Pet Clinic in Arlington [which is 1007 North Cooper Street, Arlington,
Texas] for a period of three (3) years.
(b) Employee agrees not to advertise within the City of Arlington his
departure from the Pethouse Pet Clinic or send any written announcements or
announcements of any sort notifying clients that he is leaving the practice of
veterinary medicine at the Pethouse Pet Clinic.
(c) Employee further agrees that he will not notify present or past clients of
the Pethouse Pet Clinic of new location within three (3) years after his voluntary
termination.
Each year the contract is renewed with a change in the compensation scheme,
increasing Employee’s salary and adding a provision giving him a percentage of the
profits. Otherwise, each the new contract is identical to the first, particularly with
regard to the noncompete clause.
After practicing at Employer’s clinic for five years and becoming popular with
Pethouse customers, Employee resigns to go to work for more money at Pethouse’s
major competitor, Furry Friends Animal Care. Furry Friends is approximately 2.2
miles from Pethouse Pet Clinic. Employee immediately sends notice of his new
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UNIT 16: POLICY-BASED DEFENSES 331