Non-Competition Agreement by Seller of a Business - Long Form

Bahman Eslamboly

Form reviewed by Bahman Eslamboly, Attorney at FindLegalForms

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This Non-Competition Agreement by Seller of a Business is between a seller of a business to the buyer of that business. In this agreement the seller agrees that he or she will not engage directly, or indirectly, in a business that competes with the business being sold. This agreement sets forth specific details of the agreement and includes provisions regarding confidentiality and non-solicitation of employees and customers. Having a written Non-Competition Agreement by Seller of a Business is vital and will prove valuable in the event of disagreements or litigation.

Among others, this form contains the following:
  • Parties: Sets out the names and addresses of the parties to the agreement;
  • Business Information: These provisions set out the name of the business being sold, the date of the asset or share purchase agreement and the territory served;
  • Covenants of Seller: Provisions regarding confidentiality, non-competition, non-solicitation, non-hire and enforceability of restrictions;
  • Governing Law: Sets forth the governing state, the choice of legal forum and a waiver of jury trial.

Protect yourself, your rights and your business by using our professionally prepared up-to-date forms.

This attorney-prepared packet contains:
  1. General Instructions
  2. Non-Competition Agreement by Seller of a Business for use in [state]
State Law Compliance: This form complies with the laws of [state]

Non-Competition Agreement by Seller of a Business - Long Form

Product Details

Product Non-Competition Agreement by Seller of a Business - Long Form
Country United States
Pages 9
Dimensions Designed for Letter Size (8.5" x 11")
Printer compatibility Designed to print on all ink-jet and laser printers
Editable Yes (.doc, .wpd and .rtf)
Format Microsoft Word
Adobe PDF
WordPerfect
Rich Text Format
Platform Windows Compatible
Mac Compatible
Linux Compatible
Availability In Stock. Instant Download
Usage Unlimited number of prints
Category Non-Compete After Sale of Business
Product number #28838
Download time Less than 1 minute (approx.)
Document Access Via secret online address
Email with download links
Email with attachment upon request
Refund Policy 60 days, no-questions asked, 100% money back guarantee

Frequently Asked Questions

A Non-Competition Agreement is a legal contract that restricts one party from engaging in business activities that compete with another party, typically used in the sale of a business to protect the buyer's interests.

This agreement is crucial as it helps prevent the seller from starting a competing business immediately after the sale, which can undermine the buyer's investment and the value of the business.

Key elements include the names of the parties, business information, specific covenants regarding non-competition and confidentiality, and the governing law for the agreement.

The duration of a Non-Competition Agreement can vary, but it typically ranges from one to five years, depending on the nature of the business and the terms negotiated between the parties.

Yes, as long as the agreement is reasonable in scope, duration, and geographic area, it can be enforced in a court of law. However, enforceability can vary by state.

If the seller breaches the Non-Competition Agreement, the buyer may seek legal remedies, including damages or injunctive relief to prevent the seller from continuing to compete.

While it is possible to use a template, consulting with legal counsel is advisable to ensure that the agreement complies with state laws and adequately protects your interests.

Without this agreement, the seller may freely compete with the buyer, potentially harming the business's profitability and market position, leading to disputes and financial losses.

Is This Form Right For You?

Use This Form If:

  • Individuals who are selling their business often require a Non-Competition Agreement to protect their interests. This agreement ensures that the seller cannot start a competing business in the same market, safeguarding the buyer's investment.
  • Situations requiring the protection of sensitive business information may necessitate this form. By including confidentiality provisions, the seller is legally bound to keep proprietary information private, which is crucial for maintaining a competitive edge.
  • For those involved in the sale of a business, having a clear understanding of non-solicitation terms is essential. This agreement prevents the seller from poaching employees or clients, which can help maintain stability during the transition period.
  • In cases where disputes arise post-sale, a Non-Competition Agreement serves as a critical document. It provides a legal framework that can be referenced in litigation, ensuring that both parties are aware of their rights and obligations.
  • Businesses looking to establish clear boundaries regarding competition and employee retention will find this form invaluable. It outlines specific covenants that help mitigate risks associated with the seller's future business activities.

Do Not Use If:

  • – This form is not appropriate for businesses that operate in highly regulated industries where non-compete clauses may be deemed unenforceable. For example, certain professions like healthcare may have specific restrictions.
  • – If the seller is not planning to engage in any similar business activities post-sale, a Non-Competition Agreement may be unnecessary. In such cases, the seller may not require legal restrictions on their future employment.
  • – In situations where the buyer is not concerned about competition from the seller, using this form could be excessive. If the buyer believes the seller's future business will not impact their operations, the agreement may not be needed.
  • – For sellers who are not in a position to negotiate terms, such as in a distressed sale, a Non-Competition Agreement may not be practical. The urgency of the sale may limit the ability to establish enforceable terms.
  • – If the parties are located in different states with conflicting laws regarding non-compete agreements, this form may not be suitable. Legal advice should be sought to navigate the complexities of multi-state agreements.

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