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Non-Compete Agreement

Need an Enforceable Non-Compete in Kurnool?
At Landmarq, we draft customized non-compete contracts that protect your business interests under Indian Contract Act & Specific Relief Act, featuring:

✅ Reasonable Restrictions (Time, Geography, Scope)
✅ Industry-Specific Prohibitions
✅ Penalty Clauses (Liquidated Damages)
✅ Survival Beyond Employment

To get started, simply provide the following details:

1. Parties Involved

  • Full Name of Employer or Business Entity
  • Full Name of Employee/Contractor/Consultant
  • Designation and Relationship (e.g., Employee, Vendor, Freelancer)
  • Business Address of both parties
  • Contact Details (Phone Number, Email)

2. Purpose of Agreement

  • Reason for the Non-Compete (e.g., protecting trade secrets, client list, business strategies)
  • Type of relationship (e.g., employment, business partnership, consultancy

3. Non-Compete Terms

  • Duration of Restriction (e.g., 6 months, 1 year after termination)
  • Geographic Scope (e.g., city, state, country, or specific market segment)
  • Restricted Activities (e.g., starting a competing business, working with a competitor, soliciting clients)

4. Consideration

  • Mention what the receiving party is getting in return for agreeing to the clause (e.g., job offer, payment, training access, bonus)

5. Confidentiality Clause (Optional but Recommended)

  • Include a clause to protect sensitive business information
  • Mention how long confidentiality obligations last

6. Breach and Remedies

  • Penalties or consequences for violating the agreement
  • Legal rights available to the injured party (e.g., injunction, damages)

7. Jurisdiction and Governing Law

  • The legal jurisdiction in which disputes will be resolved (e.g., Chennai, India)
  • Applicable law (Indian Contract Act, etc.)

8. Signatures and Date

  • Signature of both parties
  • Names and designations of signatories
  • Date and place of execution
  • Witness details and signatures (optional but preferred)

For inquiries or submission, contact us at:
Landmarq – Conveyancing and Legal, a trusted legal and documentation service provider in Kurnool, is here to assist you with all your agreement needs.
📧 Email: [email protected] | 📞 Phone/WhatsApp: +91 70452 82751

1. What is a Non-Compete Agreement?

A Non-Compete Agreement is a legal contract where one party (typically an employee or business associate) agrees not to enter into competition with another party (usually an employer or business partner) within a certain geographic area and time frame after the relationship ends.

2. Why are Non-Compete Agreements used?

They are used to:

  • Protect trade secrets and confidential business information
  • Prevent employees from joining competitors immediately
  • Safeguard client lists, pricing strategies, and internal processes

3. Are Non-Compete Agreements enforceable in India?

In India, non-compete clauses during employment are generally valid. However, post-employment restrictions are often not enforceable as per Section 27 of the Indian Contract Act, unless they are reasonable and protect legitimate business interests.

4. Who can sign a Non-Compete Agreement?

  • Employees
  • Independent contractors
  • Business partners
  • Franchisees
  • Vendors or consultants

5. What are typical terms in a Non-Compete Agreement?

  • Duration: How long the restriction lasts (e.g., 6 months, 1 year)
  • Geographic Scope: The area in which the restriction applies
  • Scope of Activities: Specific business activities the person is restricted from engaging in
  • Consideration: Monetary or other benefits offered in exchange for signing the agreement

6. Can an employer enforce a non-compete if the employee is terminated?

Not usually enforceable in India, especially if the restriction is post-termination and not tied to protection of trade secrets or confidential information.

7. How is this different from a Non-Disclosure Agreement (NDA)?

  • A Non-Compete restricts future employment or business activities.
  • An NDA prevents sharing confidential information, regardless of future employment.

8. What happens if someone violates the Non-Compete Agreement?

The injured party may seek:

  • Injunctions to stop the violating behavior
  • Compensation for losses/damages
  • Enforcement of contract terms in court (though outcomes depend on reasonableness and local laws)

9. Do freelancers or consultants also need a Non-Compete?

Yes, especially if they gain access to sensitive information or business strategies during the course of their engagement.

10. Should I consult a lawyer before signing or drafting a Non-Compete Agreement?

Absolutely. Legal advice ensures the agreement is fair, enforceable, and aligns with local labor laws.