Non-Competition clause is a contractual clause that restricts a party from engaging in activities that compete with the other party’s business within specific markets or areas for a set time. It protects the business interests of the restricting party by preventing harm to operations, market share, or client relationships. This clause is common in employment, joint ventures, and acquisition contracts.
Drafting Tip
Define the scope, duration, and geographical area. Ensure restrictions are reasonable to be enforceable and justified by legitimate business interests.
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