Partnership Agreement Not

In contrast, in many industries, a Non-Compete with a duration of 6-months will be considered reasonable, and therefore enforceable. The general rule is that the duration of the agreement should not exceed the time reasonably necessary to protect the employer's legitimate business interests.

Study your competition. Write up the agreement. Have your agreement reviewed by a legal professional. Present the non-compete contract to your employee. If everyone is satisfied, sign and date the agreement.

What is a noncompete agreement? Keep the group small. Keep the restrictions reasonable and narrow. Provide consideration for the agreement. Get it in writing. Prepare multiple versions if necessary. Concede choice of law/forum. Provisions to include.

On average, non-compete cases cost $10,000 or less. Many times an employer is seeking an injunction, which if the employer loses may result in a quicker resolution. Many times the issues are less factual and more legal. Legal issues require less discovery, which can be the most costly part of litigation.

The value of a non-competition agreement is represented by the present value of the cash flows that would be lost if the covenanter were to compete, adjusted for the effective probability that the covenanter would compete, and compete successfully.

In California, however, covenants not to compete are almost always not enforceable. California state law says that a covenant that restrains someone from engaging in a lawful profession, trade, or business is void.

The seller's ability to compete. The seller's intent to compete. The seller's economic resources. Potential damage posed by the seller's competition. The seller's expertise in the industry in question.

- 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.