C. A formal agreement or promise, usually in a contract.
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to pronunciationLegal Definition -
n. 1. A formal agreement or promise, usually in a contract. 2. Treaty 3. A common-law action to recover damages for breach of contract under seal. 4. A promise made in a deed or implied by law; especially an obligation in a deed burdening or favoring a landowner.
Black's Law Dictionary® Eighth Edition © 2004
Current Usage -
"Texas has a strong public policy on noncompete contracts, but after the Texas Supreme Court's decision in In re AutoNation, Inc. on June 29, 2007, Texas residents cannot be assured that they will be able to keep a dispute over a noncompete contract in a Texas courtroom. The Texas Supreme Court, the state's high court, has made it clear that because of the important public policy concerns regarding noncompetition covenants, Texas law will apply to an employee who performs the majority of services in Texas, even when the parties stipulate the law of a different forum. Thus, even if a contract says that another state's law will control, the Texas public policy will overrule the contract language and result in Texas law applying.
What happens, however, with regard to the location of legal disputes? If the contract says the court of a different state (like Florida) is the exclusive forum for a legal battle over the noncompete contract, will that contract provision be honored? Or, will Texas public policy not only overrule the choice of law clause but also overrule the choice of forum clause as well? The answer may depend on who gets to the courthouse first, but more likely than not, the contract's choice of forum will be honored.
Despite the strong state public policy interest in covenants not to compete, Texas courts have repeatedly enforced forum selection clauses where the parties have agreed to litigate the question of a noncompetition provision in another state. Therefore, the initial decision of the Texas Court of Appeals in AutoNation, Inc. v. Hatfield was somewhat surprising."
New York Law Journal Free: Trends in Employment Law By A. Michael Weber January 17, 2008