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Since non-solicitation agreements are generally more specific than non-compete agreements, they are more readily enforced by courts. To be enforceable, non-solicitation agreements must abide by certain rules: Valid business reason.
If an employer attempts to enforce a non-competition agreement in court and the judge decides that the agreement does not meet those four requirements, then the agreement is void and unenforceable.
Severance contracts that contain a release of all claims against an employer in exchange for severance pay or other benefits are legal, enforceable, and binding.
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In most cases, non-compete agreements with a duration of six months or less are considered reasonable, whereas those lasting over two years are not. When enforcing a non-compete agreement, the court will also look at other factors, such as geographical restrictions and the specific business interests at hand.
All employment agreements are legally binding on the employer and, therefore, employers are best served by having them drafted and reviewed by an experienced employment law attorney. Contract law is a particularly complex discipline that relies largely on common law, which is law as developed by judges and court cases.
Non-solicitation clauses that are clear, carefully drafted, and suitably retrained in temporal and spatial terms, are often enforceable.
The Nevada Supreme Court recently confirmed that non-competition agreements that specifically provide for a court to blue-pencil unreasonable restrictions are enforceable.
In general, the effect of the termination of a contract is to discharge the parties from their unperformed obligations under the contract. However, termination does not affect liabilities of the parties for breaches of the contract that occurred prior to the contract being terminated.
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