non-compete agreement

Definition

A contract that restricts participation in a certain market by a company or individual under specific circumstances. Employers often require employees to sign a non-compete agreement to deter them from quitting to join a competitor.

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The non-compete agreement was enforced as the former employee went to work for a rival company for just a few days.

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Some employers may require an employee to sign a non-compete agreement to keep him or her from working for the competition.

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In connection with the recent sale of my business I was required to sign a non-compete agreement for a period of five years whereby I was prohibited to operate a competing business within the county.

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noncommercial trader non-disclosure agreement