Business Setup & Legaladvanced
Non-Compete Clause
Definition
A contract term that limits someone from starting or joining a competing business for a set time or area after a deal or job ends.
Why it matters
A non-compete clause can protect your business secrets and clients, but if you are signing one, you need to know how it limits your own future options.
Example
When you sell your business, the buyer may ask you to sign a non-compete clause so you do not open a rival shop next door.
Related terms
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