Understanding the Non Compete Agreement

 

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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.

 

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DISCLAIMER: These materials have been prepared by Grenier Law Offices, PC for informational purposes only and are not legal advice. This information is not intended to create, and receipt of it does not constitute, a lawyer-client relationship. Readers should not act upon this information without seeking direct professional counsel. See further notices in our Terms of Use.      To discuss your business issue with an Experienced Boston Business Lawyer or Maine Business Lawyer e-mail Michelle L. Grenier, Esq at michelle@contactmylawyer.com