Competition Non Competition For Sale In Montgomery
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The Alabama statute is restrictive as to when a Non-Compete Clause is enforceable. Specifically, the Alabama Code Section 8-1-190 states that such clauses are void or unenforceable except in certain circumstances that are listed in the statute.
Clauses that preclude a former employee from working for any other employer in a specific industry are invalidated, as are more narrowly-tailored clauses that preclude a former employee from working for a direct competitor during a discrete, limited time period subsequent to the termination of the individual's ...
One of the responsibilities is to liquidate the company and one of the rights is to enforce contracts. So theoretically, the company, even if it is closed, could attempt to enforce the non-compete and it may have a responsibility to do so for the benefit of the owners of the company.
Enforceability of Non-Competition Agreements in Maryland If the agreement is too broad or vague, it is unlikely that a court will enforce the agreement. When a non-competition agreement is challenged, Courts in Maryland will generally enforce the agreement only: Against an employee providing unique services.
Under Alabama case law, the courts have on occasion limited or voided certain parts of non-competes or non-solicitation agreements that are overly broad in scope, geography, or duration. The new law specifically codifies that a court may now void or limit these agreements or void them in their entirety.
Several factors can void or limit the enforceability of a non-compete agreement, including overly broad restrictions, unreasonable time frames or geographical limits, lack of consideration (such as compensation or job opportunities provided in exchange for the agreement), and violation of public policy.
The answer is, it depends. The determining factors are how and what the new company acquired in the transaction and also whether the employee had to reapply for the new company or experienced any major changes in the terms and conditions of employment.
(c) Employee name agrees not to set up in business as a direct competitor of company name within a radius of number miles of company name and location for a period of number and measure of time (e.g., “four months” or “10 years”) following the expiration or termination of this agreement.
Employers do enforce non-competes, but the extent varies. Some employers rigorously enforce these agreements to protect their business interests, while others may choose not to pursue legal action.
