Non-Compete Clause
A non-compete clause restricts a party from engaging in competing business activities for a specified period and within a defined geographic area.
How It Works in Contracts
Common in employment agreements and business sales. Enforceability varies by jurisdiction. Reasonable scope, duration, and geography are key.
Examples
- Employee cannot work for a direct competitor for 12 months within 50 miles
- Business seller cannot start a competing company for 3 years
- Departing partner cannot solicit firm clients for 2 years
