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.
Salt Lake Utah Agreement Creating Restrictive Covenants
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Multi-State
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Salt Lake
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US-0064BG
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FAQ
Duration: Post-termination restrictive covenants that exceed 6 months are unlikely to be enforceable unless the employee is in a very senior, executive or key business role (see further under Question 6).
As restrictive covenants don't 'expire', if they are breached the person with the benefit of the covenant can enforce them against you.
It is possible to find non-compete loopholes in certain circumstances in order to void a non-compete contract. For instance, if you can prove that you never signed the contract, or if you can demonstrate that the contract is against the public interest, you may be able to void the agreement.
If the clause is enforceable and you're in breach, there are various sanctions that your ex-employer can seek. These include: An injunction: This would stop you from carrying out your new role and you may also face payment of the other party's legal costs.
Under the most recently amended section 34-51-201 of the Utah Code, an employer and an employee may not enter into a post-employment restrictive covenant for a period of more than one year from the day on which the employee is no longer employed by the employer. This law applies to non-compete agreements entered into
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.
To be enforceable a restrictive covenant must firstly touch and concern or somehow benefit other land, and the benefit must also have been intended to run with that benefitting land. The covenant cannot merely be a covenant of personal benefit to the original contracting party.
Providing restrictive covenants are not void for restraint of trade and required to protect legitimate business interests, they will be viewed as legally binding.
Utah courts will only enforce non-compete agreements if they are narrowly tailored "to protect the legitimate interests of the employer" (Robbins v. Finlay, 645 P.
If the restrictive covenant is in respect of a flat, you generally have the right under the terms of the lease to ask the landlord to enforce covenants against other flat owners. If you own the benefit of a restrictive covenant, then you can bring legal action yourself to enforce it.
