Non Compete Agreement With Vendor
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FAQ
compete agreement is a legal contract?or specific clause within a larger contract?that specifies a former employee may not work for a competitor for a certain period of time after their employment has ceased.
Q: Can I work for a competitor if I sign a non-compete agreement in India? Ans: Indian law prohibits non-compete clauses, and they may not be enforceable. In agreements containing such non-compete clauses, former employees are usually disincentivised from joining their competitors since they are unenforceable.
Typically non-compete agreements outline a geographic area and time frame in which an employee can't start or operate their own business to protect the company. In this situation, you could negotiate to potentially operate your business within neighboring counties.
In the context of the sale of a business, a non-compete agreement is usually signed by the seller and the buyer. The seller agrees not to compete with the buyer in the same industry, and the buyer agrees not to hire any of the seller's employees.
Non-compete clause is prohibited under the Law of Contracts. Section 27 of the Contract Act provides ? 'Every agreement by which anyone is restrained from exercising a lawful profession or trade or business of any kind, is to that extent void'.
