One who sells the good will of a business may agree with the buyer to refrain from carrying on a similar business within a specified district, city, or a part thereof, so long as the buyer, or any person deriving title to the good will from him, carries on a like business therein.

SOURCE: CC § 1674.

COURT CASES: See Shelton v. Guam Service Games, 239 F.2d 902 (CA9 1956).