Subcontractor Non Solicitation Agreement Template for South Africa

The Subcontractor Non-Solicitation Agreement is a critical legal document used in South African business relationships where a main contractor engages subcontractors while needing to protect their established business relationships and investments. This document becomes essential when subcontractors gain access to valuable client relationships, key employees, or strategic business connections through their engagement. The agreement must carefully balance the protection of legitimate business interests with South African constitutional rights to trade and competition law requirements. It typically includes specific provisions about prohibited activities, temporal and geographical scope of restrictions, and enforcement mechanisms. The document is particularly relevant in project-based industries where subcontractors work closely with the main contractor's clients or have access to sensitive business relationships.

1. Parties: Identification of the main contractor and the subcontractor, including their full legal names, registration numbers, and physical addresses

2. Background: Context of the agreement, explaining the business relationship between the parties and the legitimate business interest being protected

3. Definitions: Key terms used in the agreement, including 'Confidential Information', 'Restricted Period', 'Restricted Territory', 'Solicitation', and 'Protected Relationships'

4. Duration and Territory: Specifies the time period and geographic scope of the non-solicitation obligations

5. Non-Solicitation Obligations: Core provisions detailing the specific activities prohibited, including client, employee, and supplier non-solicitation requirements

6. Exceptions and Permitted Activities: Clearly defined exceptions to the non-solicitation obligations

7. Acknowledgments: Subcontractor's acknowledgment of the reasonableness of restrictions and receipt of sufficient consideration

8. Remedies: Available remedies in case of breach, including injunctive relief and damages

9. General Provisions: Standard clauses including governing law, jurisdiction, entire agreement, and severability

10. Signature: Execution clause and signature blocks for all parties