Standard Restrictive Covenants For Commercial Contracts (Including Non-Compete, Non- Solicitation, No Poaching)
Publisher one
Genie AIJurisdiction
England and WalesCost
Free to useRelevant sectors
Type of legal document
💼 Restrictive covenantsBusiness activity
Include restrictive covenantsA restrictive covenant is a legal agreement between two parties that restricts the use of land or property. The covenant can be positive or negative, meaning it can either grant or restrict certain rights. For example, a restrictive covenant may grant the right to use the land for residential purposes only, or it may restrict the right to build a fence higher than six feet.
The non-compete clause prohibits one party from engaging in or starting a business or employment that directly competes with the other party's business, within a specific geographic area and for a defined period of time. This aims to prevent unfair competition and safeguard the goodwill and trade secrets of the original business.
The non-solicitation clause prohibits one party from soliciting, enticing, or luring away customers, clients, employees, or suppliers of the other party with whom they have had business interactions. This clause aims to protect established business relationships and prevent the poaching of valuable resources.
The no poaching clause prevents one party from directly or indirectly recruiting or hiring employees of the other party, again with the intention of protecting the workforce, intellectual property, and overall stability of the original business.
This template serves as a starting point for drafting comprehensive and legally sound restrictive covenants in commercial contracts within the jurisdiction of the United Kingdom. It provides guidance on the specific language and provisions necessary for these types of covenants to be enforceable and outlines the general considerations and restrictions imposed by UK law in this area.
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