The Restatement and Article 2 of the Code provide that, unless circumstances indicate
the contrary, a contract term that prohibits the assignment of a contract bars only the
delegation to the assignee of the assignor’s duty of performance and does not bar the
assignment of contract rights.
If Smith goes to work for Jones under an informal arrangement by which there is no
contract stating dates for beginning or ending the relationship, Brown Co. could induce
Smith to quit her job with Jones and come to work for Brown Co. and incur no liability
to Jones.
An agreement to refrain from a particular trade, profession, or business is enforceable if
two requirements are met: that it protects a property interest of the promisee and that
the restraint is no more extensive than is reasonably necessary to protect that interest.