Goodwill

Goodwill, the benefit which accrues to a business which has been carried on for some time in a particular place either by one person or by a firm, or from the use of a special trade mark or trade name. Its value is coextensive with the probability that old customers will continue to be customers notwithstanding a change in proprietors or in its place of business. An assignment of a goodwill implies a recommendation of the assignee by the assignor to his connection, and an agreement by him to abstain for the future from all competition in the business. A goodwill is considered a subject of sale along with the stock and business premises. In taking an assignment of a goodwill it is usual for the assignee ,o have a general covenant from the assignor not to carry on business within a certain distance from the premises.