Non Compete Agreement Between Business Partners Template for Germany

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Key Requirements PROMPT example:

Non Compete Agreement Between Business Partners

"Need a Non-Compete Agreement Between Business Partners for a software development partnership in Berlin, with a 2-year restriction period starting March 2025, specifically focused on protecting our AI development technology and preventing partners from working with direct competitors in Germany and Austria."

Document background
The Non Compete Agreement Between Business Partners is a crucial document used when establishing or maintaining business partnerships in Germany where partners need to protect their mutual business interests from competition. This agreement type is particularly relevant when partners share sensitive business information, trade secrets, or client relationships, and need to ensure these assets are protected both during and after their business relationship. The document must carefully balance the legitimate business interests of the parties with German legal requirements, including compliance with the German Commercial Code (HGB), Competition Law (GWB), and constitutional principles. It typically includes specific provisions about restricted activities, geographical limitations, duration of restrictions, and consequences of breach, all tailored to meet German legal standards for enforceability.
Suggested Sections

1. Parties: Identification of all business partners entering into the agreement, including their full legal names, business addresses, and registration details

2. Background: Context of the business relationship and reasons for entering into the non-compete agreement

3. Definitions: Clear definitions of key terms used in the agreement, including 'Competitive Activity', 'Confidential Information', 'Territory', and 'Restricted Period'

4. Scope of Non-Compete: Detailed description of prohibited competitive activities, including specific business areas, industries, and types of work

5. Geographic Limitations: Clear definition of the territorial scope where the non-compete restrictions apply

6. Duration: Specification of the time period during which the non-compete obligations remain in effect

7. Consideration: Description of the mutual benefits or compensation provided in exchange for the non-compete obligations

8. Exceptions: Specific activities or circumstances that are explicitly permitted despite the non-compete restrictions

9. Confidentiality Obligations: Requirements regarding the protection and non-disclosure of confidential information

10. Breach and Remedies: Consequences of violating the agreement and available legal remedies

11. Governing Law and Jurisdiction: Specification of German law as governing law and designation of competent courts

12. Severability: Provision ensuring that if any part of the agreement is found invalid, the rest remains in force

Optional Sections

1. Post-Partnership Obligations: Specific obligations that continue after the business partnership ends, used when partners anticipate future separation

2. Customer Non-Solicitation: Specific provisions preventing partners from soliciting existing customers, included when customer relationships are particularly valuable

3. Employee Non-Solicitation: Provisions preventing the hiring of employees from the joint business, included when there are significant human resources

4. Monitoring and Reporting: Procedures for monitoring compliance with the agreement, used in complex business relationships

5. Alternative Dispute Resolution: Mediation or arbitration procedures, included when parties prefer to avoid court proceedings

6. Exit Mechanisms: Procedures for terminating the non-compete obligations under specific circumstances, included when flexibility is needed

7. Insurance Requirements: Obligations to maintain specific insurance coverage, included when business activities involve significant risks

Suggested Schedules

1. Schedule 1 - Restricted Activities: Detailed list of specific business activities, products, or services covered by the non-compete provisions

2. Schedule 2 - Territory Map: Visual representation and detailed description of the geographic areas where restrictions apply

3. Schedule 3 - Existing Clients: List of clients or customers specifically covered by non-solicitation provisions

4. Schedule 4 - Consideration Details: Detailed breakdown of any financial compensation or business arrangements forming part of the consideration

5. Appendix A - Compliance Guidelines: Practical guidelines for ensuring compliance with the non-compete obligations

6. Appendix B - Reporting Templates: Standard forms for any required compliance reporting or monitoring

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Technology and Software Development

Professional Services

Management Consulting

Manufacturing

Healthcare Services

Financial Services

Retail and E-commerce

Real Estate Development

Research and Development

Engineering Services

Marketing and Advertising

Business Advisory Services

Relevant Teams

Legal

Executive Leadership

Business Development

Corporate Strategy

Mergers and Acquisitions

Partnerships and Alliances

Commercial Operations

Risk Management

Compliance

Corporate Governance

Relevant Roles

Managing Director

Chief Executive Officer

Business Partner

Senior Partner

Executive Director

Chief Operating Officer

Business Development Director

Managing Partner

Board Member

Chief Legal Officer

Commercial Director

Partnership Manager

Strategic Alliance Director

Joint Venture Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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