Non Compete Agreement Between Business Partners Template for England and Wales

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Key Requirements PROMPT example:

Non Compete Agreement Between Business Partners

"I need a Non Compete Agreement Between Business Partners for my tech consultancy firm, where my current business partner is leaving to start their own venture in March 2025, and we need to restrict competition within Greater London for 24 months."

Document background
A Non Compete Agreement Between Business Partners is essential when partners in a business venture need to protect their shared interests and prevent unfair competition. Under English and Welsh law, this agreement establishes clear boundaries for future business activities, particularly when partners separate or one partner exits the business. It typically includes specific restrictions on competing activities, timeframes, geographical limitations, and provisions for protecting confidential information and client relationships. The agreement must be carefully drafted to ensure enforceability while complying with competition law and the common law doctrine of restraint of trade.
Suggested Sections

1. Parties: Identification and details of the business partners entering into the agreement

2. Background: Context of the agreement and business relationship between the parties

3. Definitions: Key terms used throughout the agreement

4. Scope of Non-Compete: Detailed description of prohibited activities and competition restrictions

5. Duration: Time period for which restrictions apply

6. Geographic Scope: Territorial limitations of the restrictions

7. Confidentiality Obligations: Protection of business information and trade secrets

8. Breach and Remedies: Consequences of violation and available legal remedies

9. Governing Law: Specification of applicable law and jurisdiction

Optional Sections

1. Garden Leave: Terms for paid leave during notice period - used when partners have active operational roles in the business

2. Non-Solicitation: Restrictions on approaching clients or employees - used when client/employee relationships are crucial to business

3. Consideration: Details of payment or benefit in exchange for restrictions - used when specific compensation is offered for non-compete obligations

4. Severability: Provisions for partial enforcement if parts are found invalid - used when agreement covers multiple jurisdictions or complex restrictions

Suggested Schedules

1. Schedule of Restricted Businesses: List of specific competitors or business types covered by restrictions

2. Schedule of Restricted Territories: Detailed geographical areas where restrictions apply

3. Schedule of Confidential Information: Specific details of protected business information

4. Schedule of Existing Clients: List of clients covered by non-solicitation provisions if applicable

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 Industries
Relevant Teams
Relevant Roles
Industries

Common Law Restraint of Trade Doctrine: Fundamental legal principle that governs non-compete clauses, requiring them to be reasonable and protect legitimate business interests without being wider than necessary

Competition Act 1998: Legislation ensuring the agreement doesn't breach competition law or create unfair market restrictions

Partnership Act 1890: Governs partnership structures, including fiduciary duties and obligations between business partners

Companies Act 2006: Relevant for incorporated businesses, covering directors' duties and responsibilities

Trade Secrets Regulations 2018: Legislation protecting confidential information and trade secrets, implementing EU Trade Secrets Directive

Reasonableness Requirements: Legal principle requiring reasonable limitations on geographic scope, duration, and scope of restricted activities

Enforceability Criteria: Legal requirements for enforcement including protection of legitimate business interests, consideration, and overall reasonableness

Remedies Framework: Available legal remedies including injunctive relief, damages, and specific performance for breach of non-compete agreements

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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