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In contract law, a non-compete clause (often NCC), restrictive covenant, or covenant not to compete (CNC), is a clause under which one party (usually an employee) agrees not to enter into or start a similar profession or trade in competition against another party (usually the employer).
Also if the agreement is part of a general employment contract then there is the possibility of a prior breach by an employer. This may cause the non-compete clause of the contract to become unenforceable. However, recent case law from Florida's appellate courts may reduce the scope of the prior breach defense. [27]
Non-solicitation agreement provisions—alongside the non-compete clause (NCC) and the non-disclosure agreement (NDA)—constitute one of three restrictive covenants frequently found within a business contract. They may be entered into with both employees and independent contractors—in addition to multiple entities—as part of a larger ...
Restrictive agreements were imposed more often on college graduates than those without degrees. And several agreements — mandatory arbitration, class action waivers, and NDAs — were far more ...
Under English law, restraining clauses in employment contracts are enforceable if: [citation needed] There is a legitimate interest which needs to be protected. Examples of such interests include business connections and business secrets. The restraint is reasonable, i.e. sufficiently protects the interest and goes no further.
Non-compete clauses in relation to contract law are also called restrictive covenants. Landlords may seek and courts may grant forfeiture of leases such as in leasehold estates for breach of covenant, which in most jurisdictions must be relatively severe breaches; however, the covenant to pay rent is one of the more fundamental covenants.
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