From LawDepot Law Library
Definition of "Non-Competition Clause"
- Generally, a non-competition clause is inserted into a contract to prevent one party from competing with another party. The first party has usually gained certain information from the second party or the first party has sold this information to the second party for use in its business. Also known as a non-compete clause.
- In the purchase and sale of business, a non-competition clause is used to prevent the seller from competing with the purchaser in the same business area for a certain period of time.
- In employment contracts, a non-competition clause is used to prevent an employee from pursuing work in a similar profession or trade or starting a company in competition with its employer during the employee's employment and for a certain time after the employment is terminated.
- In confidentiality agreements, a non-competition clause is used to prevent a party that has been given confidential information from using that information and competing with the second party in a certain business in a specific geographical area for a certain time period.
"Non-Competition Clause" is referred to in the following legal documents:
Purchase and Sale of Business