How To Use
This Non-Compete Covenant can be used with other documents to prevent competition.
To preserve its legality and enforceability, it must be limited in terms of scope, geography, and time. In simple terms, you should draft it as narrowly as possible to improve the odds of its enforceability and usefulness in settlement negotiations should such an occasion arise. Elsewhere in this disc more complex non-competes exist. This “covenant” is intended to be an “addition” to other agreements though it can easily stand on its own. Sometimes people desire to have this separate “covenant” so it can be prosecuted separately if need be.
- Make multiple copies. Keep one in the transaction file and another in the corporate file.
___________________________, referred to as SELLER and ___________________________, referred to as BUYER, agree:
BUYER and SELLER have entered into an agreement dated ____________, _____ for __________________. In consideration of the mutual covenants and payments to be made pursuant to the agreement, and in further consideration of the sum of $_________ (________________________________________ & _/100 dollars) paid to by BUYER to SELLER, receipt of which is acknowledged by the SELLER, SELLER agrees not to compete with BUYER under the terms and conditions set forth herein.
SELLER acknowledges that the restrictions contained herein are reasonable and necessary to protect the business and interest, which BUYER is acquiring pursuant to the above-referenced purchase and sale agreement. It is further agreed that BUYER would suffer irreparable injury if the restriction is not obeyed, and that injunctive relief is appropriate for any violation of the same.