Ruth sold her craft shop to Mary. The contract of sale had a clause which said that Ruth could not open a similar store for two years within a five-kilometre radius. This kind of clause is called

A) a restrictive covenant.
B) an employment contract.
C) a protection of the freedom to compete clause.
D) public policy clause.
E) None of these.

Restrictive Covenant

A clause in a deed or lease that limits what the owner of the property can do with it, often to ensure the property's value or character is maintained.

Clause

A specific provision or section within a contract or legal document that stipulates specific terms, conditions, or obligations.

Public Policy

Principles and standards considered by governments in managing their affairs, aiming to ensure the community's welfare and interests.