Ohio Agreement Creating Restrictive Covenants

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Multi-State
Control #:
US-0064BG
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Word; 
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Description

If you are planning on buying a home, condominium, townhouse, or other property, you must take note of whether any restrictive covenants will affect your ability to use your new residence.

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FAQ

Introduction. A non-compete in Ohio is a contract between an employer and employee that states that the employee cannot compete with the employer after termination.

While non-competition agreements are legal in Ohio, they are scrutinized carefully by the courts. Such restrictive covenants are lawful if the restraints are reasonably necessary to protect the employer's legitimate business interests.

Finally, while your HOA can't place restrictive covenants that violate state or federal laws, they can still limit your rights within reason.

North Carolina This state adheres to the strict blue pencil doctrine, such that courts may not rewrite the covenant, but sever overbroad provisions and enforce the remainder. Ohio This state follows the ?reasonable alteration? approach, in which courts have discretion to modify an overbroad covenant.

Under Ohio law, noncompetition contracts are generally enforceable if they are reasonable.

Under Ohio law, noncompetition contracts are generally enforceable if they are reasonable. The question of what's reasonable is a very fact-specific one though. It depends on the particular circumstances of a given situation, and the Ohio Supreme Court has set out a legal test for courts to apply.

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Ohio Agreement Creating Restrictive Covenants