In assessing the adequacy of an agreement that does not exist with competition, the court takes into account the duration and geographical extent of the agreement, the specific activity of the seller excluded by the agreement, the need for the agreement and the commercial interest protected by the agreement. The need for the agreement is a legitimate commercial interest that requires protection, such as the protection of trade secrets.B. The Tribunal also examines the effects of the non-application of the agreement on that interest, such as the loss of a competitive advantage resulting from a trade secret. Legitimate business interests include the protection of goodwill, trade secrets and confidential information. While non-compete agreements generally exist between employers and workers, they can also be used for supply contracts, distribution agreements, consulting activities, after the sale of a business and much more. Anyone wishing to protect trade secrets as a means of protecting their business should consider using a non-compete agreement. A non-compete agreement prevents a seller from competing with a customer`s business or providing goods or services to the customer`s direct competitors. Companies require such agreements from suppliers whose relationships with a competitor are likely to allow them to reveal their client`s business secrets. The non-competition agreement is also required when the lender`s products or services are an integral part of its customer`s contract so that the customer`s activity is compromised in the event of a breakdown in the customer-supplier relationship. A company also needs the agreement when it allows a seller to access a large amount of important information that, if disclosed to a competitor, could harm the business in different ways.
PandaTip: Give a brief description of the tasks to be performed under the agreement-z.B. “The marketing and sale of sports equipment.” PandaTip: This gives more weight to this non-competition clause, because it can now be considered specifically negotiated, instead of signing it by the representative without getting anything for it, which would make it less likely to be imposed. NON-COMPETITION. For the duration of the representative agreement and any subsequent agreement executed for similar purposes or purposes and for [DURATION] after the end of these agreements, the representative may not work as an employee, official, director, partner, advisor, representative, owner or, in any other capacity, in competition with the company. This means that the agent cannot make any of the above points for a company that has [DESCRIBE RESTRICTED TYPE OF COMPANY] in [GEOGRAPHIC AREA]. PandaTip: This section is written to reflect how non-competition obligations are drafted and the factors that take the courts into account with respect to their overall enforcement capacity. The relevance of an agreement on the seller`s non-compete commitments depends in part on the nature of the transaction that is the origin of the agreement.