Non-Compete
A seller’s agreement not to open or work for a competing business in a defined area and time after the sale.
Last updated September 5, 2026
A non-compete tries to protect the goodwill the buyer paid for. Scope should name geography, duration, and the type of business that counts as competition. Enforceability depends on state law and reasonableness; some states limit or ban employee non-competes, while sale-of-business covenants are often treated differently. A non-solicit of customers or employees is a narrower cousin.