Our lawyers regularly prosecute and defend disputes involving the enforcement of covenants not to compete, or non-competition agreements. Covenants not to compete are common in employment agreements as well in business acquisitions and joint venture or collaboration agreements.

ENFORCEABLE COVENANTS NOT TO COMPETE

Public policy generally disfavors any restraint of trade. However, covenants not to compete are common and may be enforceable if properly drafted and executed. According to Texas Business and Commerce Code Section 15.50 a covenant not to compete is enforceable if it is ancillary to or part of an otherwise enforceable agreement at the time the agreement is made to the extent that it contains limitations as to time, geographical area, and scope of activity to be restrained that are reasonable and do not impose a greater restraint than is necessary to protect the goodwill or other business interest of the promisee.

COVENANTS NOT TO COMPETE IN EMPLOYMENT AGREEMENTS

A covenant not to compete may be enforceable in an employment agreement if:

NON-COMPETITION, NON-SOLICITATION AND NON-DISPARAGEMENT

In a stock or asset purchase agreement, the seller is commonly covenants not to compete with the business being sold, solicit any employees or customers of the business, or disparage the business in any way. These covenants should be enforceable if they comply with the requirements of Texas Business and Commerce Code Section 15.50

Remedies for breach of covenant not to compete

Contracts that contain a covenant not to compete often contain very specific terms detailing the rights and remedies of a non-breaching party when the other party has violated the terms of the agreement.  Damages often include:

CONTACT US

To speak to an attorney about non-competition dispute, please contact us here, or call  713.650.9700.

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