Document background
The Supplier Non-Compete Agreement is essential for companies operating in Pakistan who need to protect their business interests, intellectual property, and competitive advantage when engaging with suppliers. This document becomes particularly crucial when suppliers have access to sensitive information, proprietary processes, or strategic business knowledge. Under Pakistani law, specifically the Contract Act 1872 and Competition Act 2010, such agreements must balance legitimate business protection with reasonable restrictions on trade. The agreement typically includes detailed provisions on restricted activities, geographical limitations, duration of restrictions, and remedies for breach, while ensuring compliance with Pakistani constitutional principles of freedom of trade and business. It's commonly used when establishing new supplier relationships or updating existing ones where competitive risks need to be managed.
