Florida Restrictive Covenants For Contractors

Q: What are restrictive covenants example?

An example of a restrictive covenant is a &#039;non-compete&#039; clause. Such a clause prevents an individual from joining a competitor for a specific time. In addition, you will find &#039;non-dealing&#039; clauses. These clauses say that an employee is not allowed to work with certain clients for a period of time.

Category:

Loans and Lending - Liens

State:

Florida

Control #:

FL-LR057

Format:

Instant download

Description

The Florida Restrictive Covenants for Contractors form is designed to outline specific agreements between contractors and clients regarding the limitations on the contractor's future activities in order to protect business interests. This form highlights essential features such as defining the scope of the restrictions, the duration of the covenant, and the geographical area it covers. Filling and editing instructions advise users to clearly fill in relevant details such as names, dates, and locations, ensuring compliance with Florida statutes surrounding enforceable covenants. Specific use cases include securing client relationships, preventing competition from former contractors, and safeguarding confidential business practices. This form serves as a valuable tool for attorneys drafting agreements for clients, partners managing contractors, owners ensuring compliance within their businesses, and associates or paralegals assisting in documentation. Legal assistants can rely on this form to ensure legally binding agreements are effectively and efficiently executed, thereby protecting their organization's interests.

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FAQ

Requirements in US LawThe covenant must be in writing to satisfy the Statute of Frauds. The original parties to the agreement must have intended that successors be bound by the agreement.

An example of a restrictive covenant is a 'non-compete' clause. Such a clause prevents an individual from joining a competitor for a specific time. In addition, you will find 'non-dealing' clauses. These clauses say that an employee is not allowed to work with certain clients for a period of time.

Restrictive covenants are not considered enforceable in all states across the USA. In Florida, they are enforceable, and courts tend to favor employers over employees when enforcing restrictive clauses in a signed agreement.

Even if you remain classified as a contractor, a non-compete clause may not be enforceable. Independent contractors are expected to be experts in their chosen field and are likely working for multiple companies at once. If one company attempts to enforce a non-compete clause, your ability to find work may be affected.

Under Florida law, in certain circumstances, an independent contractor agreement can contain an enforceable non-compete clause. Florida courts will uphold a non-compete agreement if the non-compete clause is reasonable in geographic scope and reasonable in its time-frame.