Non-Compete Agreement

Definition:

An agreement or undertaking whereby a key employee is bound not to engage in certain activities that are competitive with those of his/her employer for a specified period of time after he/she leaves that employer. In the United States, courts are generally hostile toward Non-Compete Agreements, particularly where the subject person is not a senior executive or someone who has entered into the agreement in connection with the sale of their business benefitting from the agreement.

See also Non-Solicitation Agreement.

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