Greene County Tire and Supply, Inc. v. Spurlin

In June of 1958, Greeneville Tire and Recapping Company sold its assets, with certain minor exceptions of no importance in this case, to Greene County Tire and Supply, Inc., for a substantial cash consideration. All the stock in the selling corporation was owned by W. H. Gulley, Roy Marshall and R. C. Spurlin.

As part of the consideration, Marshall and Spurlin agreed, and it was so written into the contract which each, as well as the corporation, signed, that they would not engage directly or indirectly, either for themselves or as the agents or servants, in a similar business or as the owner…