Born-Free Pte Ltd ("Born-Free") is a construction company that specialises in environmentally friendly residential projects. It is struggling to survive in a competitive market. One of its cost-cutting measures was to retrench staff. Benny has been working with Born-Free for one year. Born-Free's management decided to terminate the services of Benny. The following agreement was reached between Born-Free Pte Ltd and Benny during a meeting:
(a) Benny would vacate his position as a sales and marketing manager at a specified date;
(b) Benny would not enter into competition, directly or indirectly, with Born-Free for a period of 6 months from the date of termination; and
(c) Benny shall not join any construction company, including construction companies that specialise in environmentally friendly residential projects, in Singapore or anywhere else during this 6-month period.
After leaving Born-Free, Benny incorporated a company, Live-Again Pte Ltd, which successfully tendered for various contracts in competition with Born-Free. When approached by Born-Free about his actions, Benny denied that statement (b) above constituted a legally binding promise not to compete with Born-Free.
Born-Free has come to you for advice. It wants Benny, through Live-Again Pte Ltd, to immediately stop tendering for contracts that are in competition with Born-Free.
Explain whether the terms of the agreement are enforceable and if yes, to what extent. Apply case law and legislations to identify the remedies available to Born-Free in the event that the courts held that there was a breach by Benny. Demonstrate well developed written proficiency.