Document background
The Acquisition Non Compete Agreement is a crucial document in Australian business acquisitions, designed to protect the purchaser's investment by preventing the seller from competing with or undermining the acquired business. This document becomes necessary when a business is being sold, and the purchaser needs assurance that the seller won't immediately establish a competing business or poach customers and employees. The agreement must be carefully drafted to comply with Australian competition law and the common law doctrine of restraint of trade, which requires that restrictions be reasonable in terms of duration, geographic scope, and protected interests. Typically used alongside the main sale agreement, it includes specific provisions about restricted activities, territorial limits, time periods, and consequences of breach. The document should be tailored to the specific industry context and the nature of the business being acquired, while ensuring enforceability under Australian jurisdiction.
