Non Compete Agreement Checklist

Non compete agreements are often a part of (or clause within) a broader agreement, e.g. an independent contractor agreement, employment agreement, confidentiality agreement distributorship agreement, etc.  The following is a helpful non-exclusive checklist for a non-compete clause.

  • Describe the consideration provided (e.g., salary, payment, disclosure, etc.). 
  • Describe restrictive time period (must be reasonable and enforceable).
  • Describe geographical scope of restriction. 
  • Describe scope of restricted activities, e.g.  “employee will not  . . . 

          1. contact or solicit customers                      

          2. discourage customers

          3. participate in, restricted activities, e.g.  engage in business that competes, etc.

  • Require attorneys fees and cost be paid in event of breach of
    Non Compete Agreement. 
  • Provide for injunctive remedy, in addition to other remedies in event of breach of Non Compete Contract.

    Note, non-circumvention provisions may also be appropriate in certain circumstances.