| (2) What about the public interest? In some cases while it might be reasonable between, it would be so injurious to the public interest that it ought to be struck down. Public interest is the benefit from free and open competition. So where there are already many producers in the market competing with one another, and taking one of them out will not significantly hamper that market then this will not violate the public interest. But if there were, say, 2 or 3 competitors in the market, then taking them out be injurious to public interest to the point where it does not matter how reasonable it was between the original parties.
In what ways do both parties benefit from non-compete clauses? The seller’s asset becomes more saleable, and the buyer benefits because his asset is protected / not at risk in a way it otherwise would be. So in the purchase or sale of a business this is particularly relevant. Remember this if hypo has to do (or I guess does not have to do) with the sale of a business (because less applicable to employment contracts)
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