Question

What is a non-compete agreement? When should an entrepreneur insist that his or her employees sign such an agreement? What must the entrepreneur do in structuring the agreement to give the greatest assurance that the courts will enforce the agreement?

Answer 1

A non-compete agreement is a contract between two parties where one party agrees not to enter into the similar business or profession the other party has.

If an entrepreneur feels that his work/business model can be copied by his/her employee then only he should insist his employees to sign such agreement.

Entrepreneur must create copyright or patent in structuring the agreement to give the greatest assurance that the courts will enforce the agreement.