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Restrictive covenants and non-competition clauses prevent people from doing things they are entitled to do.

Depending on how they’re written into a contract, they apply:

• during the contract, and
• for a limited time only after the contractual relationship ends.

And non-compete clauses are usually difficult to enforce.

Two different people could have exactly the same contract – word for word. The restrictive covenants could be enforceable against one person, but not the other. The restrictions may be justifiable against one of them, but not against the other.

If you can identify the type of clause and what it is looking to prevent, you’ve got a better idea of:

• the type of competition which is prevented, and
• how enforceable the non-competition clauses might be.

A breach of contract is material non-compliance with the terms of a legally binding contract.

Breaches of contract give rise to:

• a right to monetary compensation, that is damages, and
• if it’s serious enough, the right to terminate the contract.

It’s a necessary part of any legally binding contract that each party expects to obtain the benefit of the contract entered into.

But then it’s breached. What happens then? How do legal rights to damages and termination play out?

With so many different sorts of contracts out there, you can expect to be doing contract reviews on a whole host of different agreements.

Partnership agreements, contracts with independent contractors, suppliers, software contracts and intellectual property: all sort of business contracts and legal documents.

All contracts will have some effect on your business. Some big, some small.

If you haven’t read it or don’t understand it, you’re exposing your business to unknown risks.

What do you look for in a contract?

They’re types or classes of clauses which are commonly found in contracts.

They may look the same if you’re unfamiliar with them.

Slight differences in wording can make all the difference in their legal effect.

They’re usually inserted at the end of a contract.

But they can appear anywhere in a contract.

Anywhere.