covenant not to compete

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covenant not to compete

n. a common provision in a contract for sale of a business in which the seller agrees not to compete in the same business for a period of years or in the geographic area. This covenant is usually allocated (given) a value in the sales price. (See: covenant)

References in periodicals archive ?
Under our law, a non-compete clause is not a price fixing agreement.
However, unethical treatment of employees, non-compete clauses in the employment contracts and the failure to provide the promised benefits often result in employees reluctance to taking up the employment in various companies.
As such, a strict reading of this article infers that any non-compete clause or CNC will be invalid.
Typically, a court must find that a non-compete clause protects an employer's legitimate interests before it gets enforced.
The extent to which non-compete clauses are legally allowed varies per jurisdiction.
For Areva NP's core products and services (nuclear islands, nuclear services and fuel assemblies), it concluded that the non-compete clause could be accepted in principle but that its duration was excessive.
Tawainese PC maker claims its former CEO breached a 12-month non-compete clause
Some physicians wrongly assume that they will be able to negotiate their way out of a non-compete clause when exiting hospital employment.
A former product manager at a Merrimack chemical firm violated his non-compete clause by quitting and working for a Manchester competitor, according to a suit filed last week in federal District Court in Concord.
RDF, which produces hit shows including Location, Location, Location and the controversial documentary A Year With The Queen, claims Mr Clements signed a non-compete clause which prevented him taking up the job with SMG until December 2008.
Require that the non-compete clause be reasonable in its scope--duration, geographic region, and market segment.
and testified that in many transactions with Hollinger, a non-compete clause was present in the sales contract, whether Reed requested one or not.

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