The Deed of Non Competition is a crucial legal instrument used in Australian business contexts to protect legitimate business interests from competitive activities. It is commonly utilized in situations such as business sales, employment terminations, or partnership dissolutions where there is a need to prevent one party from competing with another within specific geographic and temporal boundaries. The deed format is specifically chosen over a standard contract as it provides stronger enforcement mechanisms and does not require consideration under Australian law. This document typically includes detailed provisions about restricted activities, territorial limits, duration of restrictions, and protection of confidential information, all structured to ensure compliance with Australian competition law and common law principles regarding reasonable restraint of trade.
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1. Parties: Identifies and defines all parties to the deed, including full legal names and addresses
2. Background: Sets out the context and circumstances leading to the deed, including the relationship between the parties
3. Definitions and Interpretation: Defines key terms used throughout the deed and establishes interpretation principles
4. Non-Competition Obligations: Details the core restrictions on competitive activities, including specific prohibited actions
5. Duration of Restrictions: Specifies the time period during which the non-compete obligations will apply
6. Geographic Scope: Defines the geographical area where the restrictions apply
7. Confidential Information: Provisions regarding the protection and non-use of confidential information
8. Acknowledgments: Parties' acknowledgments regarding the reasonableness of restrictions
9. Breach and Remedies: Consequences of breach and available remedies including injunctive relief
10. Severance: Provisions for severing unenforceable terms while maintaining others
11. General Provisions: Standard boilerplate clauses including notices, governing law, and entire agreement
12. Execution: Formal execution block meeting deed requirements under Australian law
1. Non-Solicitation of Employees: Additional restrictions on soliciting employees, used when protecting against staff poaching is relevant
2. Non-Solicitation of Customers: Restrictions on approaching customers, used in business sale or similar commercial contexts
3. Intellectual Property: Provisions regarding IP rights and restrictions, used when IP is a significant concern
4. Garden Leave: Provisions for garden leave periods, used in employment-related non-compete scenarios
5. Assignment and Novation: Rights to assign the deed, used in commercial contexts where business transfers are contemplated
6. Independent Legal Advice: Acknowledgment of receiving legal advice, used when one party may be at a disadvantage
7. Consideration: Detailed consideration provisions, used when specific payments or benefits are provided for the restrictions
1. Restricted Activities: Detailed list of specific activities that constitute prohibited competition
2. Restricted Area: Detailed maps or descriptions of the geographical areas where restrictions apply
3. Competitor List: List of specific competitors or types of competitors covered by the restrictions
4. Confidential Information: Detailed description of what constitutes confidential information
5. Consideration Details: Schedule detailing any payment terms or other consideration for the restrictions
6. Key Customers/Clients: List of specific customers or clients covered by non-solicitation provisions
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