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Non Compete Agreement Between Companies

Non Compete Agreement Between Companies Template for Ireland

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Key Requirements PROMPT example:

Non Compete Agreement Between Companies

"I need a Non-Compete Agreement Between Companies for my software development company based in Dublin, preventing a potential business partner from competing in the Irish and UK markets for 24 months after our joint venture ends in March 2025."

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Document background
A Non-Compete Agreement Between Companies is essential in business transactions where companies need to protect their legitimate business interests, particularly in scenarios involving mergers, acquisitions, joint ventures, or strategic partnerships. This document, governed by Irish law, is commonly used when companies share sensitive information, technology, or market knowledge with other businesses. The agreement must be carefully drafted to ensure compliance with both Irish competition law and EU regulations, particularly the Competition Act 2002 and Article 101 of the TFEU. It typically includes specific provisions about geographical limitations, time restrictions, and scope of prohibited activities, all of which must be reasonable and proportionate to be enforceable. The agreement is particularly crucial in protecting intellectual property, trade secrets, and maintaining fair competition while avoiding overly restrictive practices that could be deemed anti-competitive.
Suggested Sections

1. Parties: Identifies and defines the companies entering into the agreement, including their registered addresses and company numbers

2. Background: Sets out the context of the agreement, including the business relationship between the parties and why the non-compete provisions are necessary

3. Definitions: Defines key terms used throughout the agreement, including 'Confidential Information', 'Restricted Business', 'Territory', and 'Restricted Period'

4. Scope of Non-Compete: Details the specific activities that are prohibited, including market sectors, products, and services

5. Duration and Territory: Specifies the time period and geographical area where the restrictions apply

6. Consideration: States the consideration being provided in exchange for the non-compete obligations

7. Non-Solicitation: Prohibitions on soliciting customers, suppliers, or employees

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

9. Reasonableness: Acknowledges that the restrictions are reasonable and necessary to protect legitimate business interests

10. Remedies: Sets out the consequences of breach and available remedies including injunctive relief

11. General Provisions: Standard contractual terms including governing law, severability, and entire agreement provisions

Optional Sections

1. Assignment: Include when either party may need to transfer their rights or obligations under the agreement

2. Group Company Provisions: Include when the non-compete should extend to affiliated companies or subsidiaries

3. Post-Termination Obligations: Include when the agreement is tied to another commercial agreement and specific post-termination obligations need to be detailed

4. Compliance with Competition Laws: Include specific provisions addressing compliance with EU and Irish competition laws when the agreement involves significant market players

5. Carve-outs: Include when specific activities or territories need to be excluded from the restrictions

6. Change of Control: Include when the agreement should address what happens in case of a change in ownership of either company

Suggested Schedules

1. Schedule 1 - Restricted Territory: Detailed description or map of the geographical areas where restrictions apply

2. Schedule 2 - Restricted Business Activities: Comprehensive list of specific business activities, products, or services covered by the non-compete

3. Schedule 3 - Restricted Customers/Clients: If applicable, list of specific customers or client categories covered by the restrictions

4. Schedule 4 - Excluded Activities: List of specific activities, products, or services explicitly excluded from the restrictions

5. Appendix A - Competition Law Compliance Guidelines: Guidelines ensuring compliance with relevant competition laws

6. Appendix B - Related Agreements: List of any related agreements that interact with the non-compete provisions

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant Industries

Technology and Software Development

Professional Services

Manufacturing

Healthcare and Pharmaceuticals

Financial Services

Consulting

Retail and E-commerce

Research and Development

Telecommunications

Energy and Utilities

Biotechnology

Media and Entertainment

Industrial Services

Food and Beverage

Relevant Teams

Legal

Corporate Affairs

Compliance

Executive Leadership

Business Development

Mergers and Acquisitions

Strategy

Commercial Operations

Risk Management

Corporate Governance

Relevant Roles

Chief Executive Officer

Chief Legal Officer

General Counsel

Legal Director

Commercial Director

Business Development Director

Managing Director

Chief Operating Officer

Corporate Lawyer

Compliance Officer

Head of Mergers and Acquisitions

Chief Strategy Officer

Company Secretary

Head of Legal Operations

Senior Legal Counsel

Business Unit Director

Industries
Competition Act 2002: This is the primary Irish legislation governing competition law. It prohibits anti-competitive agreements and abuse of dominant market position. Any non-compete agreement must comply with these provisions to ensure it doesn't constitute an illegal restriction of trade.
Treaty on the Functioning of the European Union (TFEU) Article 101: EU legislation that prohibits agreements which may affect trade between Member States and prevent, restrict or distort competition within the internal market. Non-compete agreements must be assessed against these criteria.
Common Law Principles of Restraint of Trade: Irish courts follow common law principles regarding restraint of trade. These principles require that non-compete restrictions must be reasonable and go no further than necessary to protect legitimate business interests.
Companies Act 2014: This provides the legal framework for company operations in Ireland and includes provisions about corporate capacity and authority to enter into contracts.
European Union (Withdrawal) Act 2020: Post-Brexit legislation that affects how Irish companies deal with UK entities if the non-compete agreement involves cross-border elements with the UK.
Sale of Goods and Supply of Services Act 1980: While primarily about goods and services, this act contains provisions about contractual terms and may be relevant if the non-compete is part of a larger commercial agreement.
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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