Non-compete agreements prevent a party from competing with another party for potentially similar business interests. Employment contracts and business purchase agreements regularly contain non-compete provisions.
Common Non-Compete Agreement Issues
Public policy generally disfavors non-compete agreements. Courts are hesitant to take away a party’s ability to make a living or to limit the services available to the public. To enforce a non-compete agreement a party must show that the agreement is reasonable in terms of scope, duration, and geographic area. The agreement must also protect legitimate business interests. Both current and potential economic relations may be protected by non-compete agreements.
Non-disclosure agreements usually accompany non-compete agreements. Arguing about a non-compete agreement often goes hand-in-hand with arguing about a non-disclosure agreement.
Handling Non-Compete Agreement Disputes
Non-compete agreements are generally enforced through court. However, the agreements may contain alternative options to resolve the dispute, such as arbitration.
In the court system, expedited proceedings, such as temporary restraining order hearings, may be available to help resolve major issues quickly.