- Non-competition agreements are enforceable to protect trade secrets, confidential
business information or good will if reasonably limited in time and space.
- Non-competition agreements cannot be used to protect against ordinary competition.
- Non-competition agreements entered into as part of a sale of a business often are
enforced more liberally than non-competition agreements relating only to employment.
Courts will enforce agreements which prevent sellers from competing and thereby reducing
the value of the business which would cause damage to the buyer.
- Employers that wrongfully fire an employee who has a non-competition agreement can be
prevented from enforcing that agreement.
- If the geographical or time restrictions are too broad, a court can "re-write"
the agreement and enforce the "re-written" agreement on a more restricted basis.
[ Up ][ Home ] [ Case of the Week ] [ Summaries ] [ Web Sites ] [ About the Author ] [ Contact Us ]