This appeal presents the question whether a restrictive clause in a bill of sale of a barber shop preventing the seller from carrying on his trade
The claims of error in the finding are without merit. The facts can be summarized as follows: The defendant owned and operated in Rockville a business known as Lally s Barber Shop. In September, 1948, he sold the shop “together with all good will” to the plaintiff for $1500. The bill of sale contained the following restrictive clause: “The seller agrees in and for the consideration above named, that he will not engage in the barbering business for a period of five years from this date in the City of Rockville ... or within a radius of one mile from Market Street in said City . . . either directly or indirectly on his own account or as partner, stockholder, employee or otherwise.” The one-mile alternative was included because the limits of the town of Ellington were within a quarter of a mile of the location of the defendant’s business. At the time of the sale, the defendant’s condition of health was not good. He and his wife owned the four-family tenement house where they lived. The property was heavily incumbered with mortgages. Interest on these mortgages and the taxes were in arrears. The defendant was fifty-eight years old, had been a barber for forty years and was unfamiliar with any other kind of work. He was not an invalid, however, and was capable of doing some manual and physical labor. He opened a restaurant which proved unsuccessful. He gave it up and went to work for the plaintiff as a barber in his old shop. After working there about nine months he left in April, 1950, and set up a one-chair barber shop in his own home, which was not more than 300 yards from the shop he had sold to the plaintiff. There he has the patronage of old personal customers and the work is easier for him. His income is about what he received
This is a contract in restraint of trade. The test of its validity is the reasonableness of the restraint it imposes. Restatement, 2 Contracts § 514; 5 Williston, Contracts (Rev. Ed.) § 1636; 3 Pomeroy, Eq. Jur. (5th Ed.) § 934a;
The plaintiff bought all the equipment in the defendant’s shop “together with all good will.” Good will in the sense here used means an established business at a given place with the patronage that attaches to the name and the location. It is the probability that old customers will resort to the old place.
People ex rel. A. J. Johnson Co.
v.
Roberts,
The defendant argues that this contract works an undue hardship upon him and therefore should not be enforced in equity. The court has found that the circumstances of the defendant’s health and finances and the possibility that both might deteriorate in the future were known to him when he made the contract. The court found further that there was no possibility that the defendant and his wife would become public charges and that the defendant was not an invalid, although his health would be under less strain and the family finances improved if he could carry on his vocation as a barber in his home. The plaintiff, however, had purchased the business for a substantial considera
The defendant’s claims that the plaintiff failed to prove irreparable damage and that he had an adequate remedy at law are of no avail. Irreparable damage would inevitably result from a violation of the defendant’s promises. 6 Page, Contracts (2d Ed.) § 3386.
There is no error.
In this opinion the other judges concurred.
