Redmond v. Royal Ford, Inc.

This appeal contests the validity of a covenant not to *712compete.

Appellant was employed in July, 1974, by oral agreement as a salesman for Royal Ford, Inc., a Ford automobile dealership. Royal Ford, Inc., acted through Richard Royal, its President and sole stockholder. Royal agreed he would at a future time sell appellant some stock in the company if his work was satisfactory. In April, 1975, a written contract was entered into whereby appellant was hired in an executive capacity and sold a 10% stock interest in Royal on deferred payments. It provided that in the event the employment was…