A Covenant Not To Compete Is An Agreement Limited To The Sale Of An Ongoing Business

If you have any further questions regarding the requirement not to participate in competitions, or if you would like to know more about the laws of your country, you should contact an experienced business lawyer for more information. The sale of a business does not occur when a part of a business that cannot be carried on as a business is sold. For example, the sale of a company`s inventory would not be the constant concern of that company. Information should not be readily available from public sources. These can be products, marketing and strategic plans, sales data and forecasts, and even customers. However, if the worker signs the agreement after the start of employment, the mere maintenance of employment is not considered to be a valid consideration; The employee must receive something else of value in exchange for the agreement, for example. B a promotion or other significant benefits that would not otherwise have been available if the employee had not signed the agreement. When a non-departure obligation is signed after employment, it must also be supported by a counterparty, such as for example. B a promotion. Finally, an obligation not to compete must not unduely burden the worker`s right to earn a living. This means that the federal state must be proportionate in its scope and duration. .