What happens if a court finds that a restrictive covenant agreement is not enforceable because it is over-broad?
December 13, 2023
Both New York and New Jersey are considered “blue pencil” states because courts in both jurisdictions have the authority to alter the terms or narrow the scope of a restrictive covenant to make the agreement enforceable. However, courts may decline to “blue pencil” a restrictive covenant if no reasonable modification of the agreement would make it enforceable or if the terms of the restrictive covenant agreement expressly preclude modification by a court.
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