Question

Provide an example of a situation where an noncompete agreement would be necessary? What should be included in the noncompete agreement to protect the venture?

Answer 1

a non-compete agreement or clause is a legal document that restricts an employee from going to work for an organization's competitor for a set period of time in a certain geographical area after leaving the business. The time frame for a non-compete clause can vary greatly, from six months to five years or longer. The goal is to ensure employers don't invest time and money training and molding an employee, only to have them transfer those skills to a direct competitor.

The various things that should be included in a NOn-Compete are:

Duration

Scope

Geography

Competition

damages