Massachusetts Clauses Relating to Venture Nonexecutive Employees
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FAQ
A. WHAT IS NON-COMPETE CLAUSE ? A Non-Competition Clause or generally called Non-Compete Clause is a clause as per which the employee agrees not to work with a rival company or start a similar trade or profession for a specified period of time after leaving his/her current employer.
The Federal Trade Commission proposes preventing employers from entering into non-compete clauses with workers and requiring employers to rescind existing non-compete clauses. The Commission estimates that the proposed rule would increase American workers' earnings between $250 billion and $296 billion per year.
California law bars covenants not to compete in nearly all circumstances. In Edwards v. Arthur Anderson, the California Supreme Court determined that the law should be read strictly, and not only void the ?unreasonable? noncompete clause, but all noncompete clauses other than those explicitly allowed in the code.
Under Massachusetts contract law, consideration is an exchange of value. For an agreement to be a binding contract, both sides have to give something and both sides have to receive something. For non-solicitation agreements, the employer gets the employee to promise not to solicit clients or workers from the employer.
Section 27 of the Indian Contract Act-1872 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'.
"A covenant not to compete contained in a contract for personal services will be enforced if it is reasonable, based on all the circumstances."
