Non Compete Agreement For Sales Representative Template for India

The Non-Compete Agreement For Sales Representative is essential for businesses operating in India that need to protect their customer relationships, trade secrets, and competitive advantage. This document becomes particularly crucial when sales representatives have access to sensitive information such as customer lists, pricing strategies, and business methodologies. The agreement must be carefully drafted to comply with Indian legal requirements, particularly Section 27 of the Indian Contract Act, which generally holds post-employment restraints as void unless reasonable and necessary for business protection. The document typically includes specific temporal and geographical restrictions, confidentiality obligations, and non-solicitation provisions. It's important to note that Indian courts scrutinize such agreements closely, especially regarding post-employment restrictions, making it essential to ensure the terms are reasonable and proportionate to the business interests being protected.

1. Parties: Identification of the employer company and the sales representative, including full legal names and addresses

2. Background: Context of the agreement, nature of employment relationship, and reason for non-compete provisions

3. Definitions: Key terms including 'Confidential Information', 'Competing Business', 'Territory', 'Restricted Period', and 'Products/Services'

4. Scope of Employment: Overview of sales representative's role, responsibilities, and access to confidential information

5. Non-Compete Obligations: Core restrictions on competitive activities, including temporal and geographical limitations

6. Non-Solicitation of Customers: Restrictions on approaching or dealing with company's customers during and after employment

7. Non-Solicitation of Employees: Restrictions on recruiting or hiring company employees

8. Confidentiality Obligations: Protection of trade secrets, customer lists, and other confidential information

9. Duration and Territory: Specific time period and geographical area of restrictions

10. Acknowledgments: Employee's confirmation of reasonableness of restrictions and receipt of consideration

11. Remedies: Available legal remedies in case of breach, including injunctive relief

12. Governing Law and Jurisdiction: Specification of Indian law and relevant jurisdiction for disputes

13. Severability: Provision for survival of remaining clauses if any clause is found unenforceable