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.