Utah Consulting Agreement for Independent Consultant with Non-Competition Clause
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How to fill out Consulting Agreement For Independent Consultant With Non-Competition Clause?
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FAQ
Are there legal or ethical mandates against working as a security consultant for two competing companies? Barring contractual terms you may agree to, there aren't any legal mandates that I am aware of that would prevent a security consultant from working for two competing companies.
- The two most common settings for legitimate non-competition agreements are the sale of a business and an employment relationship. When a non-compete agreement is ancillary to the sale of a business, it is enforceable if reasonable in time, geographic area, and scope of activity.
This law states that a non-compete agreement may be enforced if it is part of a reasonable severance agreement mutually and freely agreed upon at or after the time of termination. The non-compete agreement must also meet the common law requirements imposed by Utah courts in order to be enforceable.
Non-Compete Agreements: What's Negotiable? Other key terms of a nondisclosure agreement may be open to negotiation, especially if the employer uses the same boilerplate language in every contract.
Under current law, non-compete agreements in Utah must be no longer than one year, limited to a reasonable geographic area, and intended to protect only legitimate business interests of the employer.
Independent contractors and consultants may also be subject to a non-compete clause in their employment contract that seeks to avoid competition after they terminate a relationship and separate from the company.
Non-compete agreements are typically considered enforceable if they: Have reasonable time restrictions (generally less than one year) Are limited to a certain geographic area (specific cities or counties, rather than entire states)
This law states that a non-compete agreement may be enforced if it is part of a reasonable severance agreement mutually and freely agreed upon at or after the time of termination. The non-compete agreement must also meet the common law requirements imposed by Utah courts in order to be enforceable.
Typically, the only way to fight a non-compete agreement is to go to court. If you are an employee (or former employee) who signed such an agreement, this means you must violate the agreement and wait to be sued. It may be that your former employer has never sued another employee to enforce the non-compete agreement.
You Can Void a Non-Compete by Proving Its Terms Go Too Far or Last Too Long. Whether a non-compete is unenforceable because it covers too large of a geographical area or it lasts too long can depend on many factors. Enforceability can depend on your industry, skills, location, etc.