Non Compete Non Solicitation Agreement Template for South Africa

A Non-Compete Non-Solicitation Agreement is essential in South African business relationships where one party needs to protect their legitimate business interests from competition or solicitation by another party. This document is commonly used in employment relationships, business sales, or partnership dissolutions. It must be carefully drafted to comply with South African constitutional principles and common law, which require such restrictions to be reasonable in duration, geographical scope, and business activities covered. The agreement typically includes detailed provisions about restricted activities, temporal and geographical limitations, and consequences of breach. It's particularly important to note that South African courts will only enforce these agreements if they protect legitimate business interests and don't unfairly restrict trade.

1. Parties: Identifies and defines the parties to the agreement, including their full legal names, registration numbers (if companies), and physical addresses

2. Background: Sets out the context of the agreement, including the relationship between the parties and the legitimate business interests being protected

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

4. Non-Compete Obligations: Details the specific restrictions on competing activities, including scope, duration, and geographical limitations

5. Non-Solicitation Obligations: Specifies restrictions on soliciting employees, clients, customers, or suppliers of the protected business

6. Duration and Territory: Clearly states the time period and geographical area where the restrictions apply

7. Acknowledgments: Contains statements by the restricted party acknowledging the reasonableness of restrictions and receipt of consideration

8. Severability: Provides for the survival of remaining provisions if any provision is found to be unenforceable

9. Breach and Remedies: Outlines the consequences of breach and available remedies, including injunctive relief

10. General Provisions: Standard legal clauses including governing law, jurisdiction, entire agreement, and amendment provisions