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Vendor Non Compete Agreement Template for Australia

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Key Requirements PROMPT example:

Vendor Non Compete Agreement

"I need a Vendor Non-Compete Agreement for a software development contractor in Sydney who will have access to our proprietary code and client data, with restrictions covering Australia and New Zealand for 12 months after the contract ends in March 2025."

Document background
A Vendor Non Compete Agreement is essential when engaging vendors who will have access to sensitive business information, trade secrets, or strategic insights that could be competitively advantageous. This document, governed by Australian law, is particularly crucial when the vendor could potentially become a competitor or work with competitors in ways that could harm the principal company's interests. It should be used when establishing new vendor relationships or updating existing ones where the vendor will have access to confidential information, key customer relationships, or proprietary technology. The agreement must be carefully drafted to ensure enforceability under Australian law, including the Competition and Consumer Act 2010 and relevant state legislation, with reasonable restrictions in terms of geography, duration, and scope. Typical situations requiring this agreement include engaging specialized service providers, consultants, manufacturers, or suppliers who could gain significant competitive advantages through the business relationship.
Suggested Sections

1. Parties: Identification of the contracting parties including full legal names, ABNs, and registered addresses

2. Background: Context of the agreement, nature of the business relationship, and legitimate business interests being protected

3. Definitions and Interpretation: Key terms used throughout the agreement, including 'Confidential Information', 'Competitive Activity', 'Restricted Period', and 'Restricted Territory'

4. Non-Compete Obligations: Core restrictions on competitive activities, clearly defining prohibited actions and business activities

5. Geographic and Time Restrictions: Specific details of the geographical areas and time period where restrictions apply

6. Confidentiality Obligations: Requirements regarding the protection and non-use of confidential information

7. Non-Solicitation: Restrictions on soliciting customers, employees, or suppliers

8. Acknowledgments: Vendor's acknowledgment of reasonableness of restrictions and receipt of consideration

9. Consideration: Details of the consideration provided in exchange for the non-compete obligations

10. Enforcement and Remedies: Rights and remedies available in case of breach, including injunctive relief

11. Severability: Provisions for maintaining validity if certain clauses are found unenforceable

12. General Provisions: Standard contractual terms including notices, governing law, and entire agreement

Optional Sections

1. Assignment and Succession: Include when the agreement needs to bind successors or assignees, particularly relevant for corporate vendors

2. Independent Contractor Relationship: Include when the vendor is an individual contractor to clarify the nature of the relationship

3. Intellectual Property Protection: Include when specific IP rights need protection beyond general confidentiality provisions

4. Training and Trade Secrets: Include when the vendor has received specialized training or access to valuable trade secrets

5. Exceptions and Permitted Activities: Include when certain competitive activities need to be explicitly permitted

6. Dispute Resolution: Include when specific dispute resolution procedures (mediation/arbitration) are preferred over court proceedings

7. Garden Leave: Include for senior vendors where a paid non-compete period is required

Suggested Schedules

1. Schedule 1 - Restricted Territory: Detailed map or list of geographical areas where restrictions apply

2. Schedule 2 - Competitive Business Activities: Detailed description of prohibited business activities and competitors

3. Schedule 3 - Confidential Information: Specific list of confidential information and trade secrets covered

4. Schedule 4 - Key Customers and Suppliers: List of specific customers and suppliers covered by non-solicitation provisions

5. Appendix A - Consideration Details: Detailed breakdown of any financial or other consideration provided

6. Appendix B - Compliance Certificate: Template certificate for vendor to periodically confirm compliance with restrictions

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions





























Clauses





























Relevant Industries

Technology & Software

Professional Services

Manufacturing

Healthcare & Pharmaceuticals

Financial Services

Retail & E-commerce

Telecommunications

Research & Development

Consulting

Industrial Services

Engineering

Defense Contracting

Relevant Teams

Legal

Procurement

Vendor Management

Supply Chain

Compliance

Risk Management

Operations

Commercial

Strategic Sourcing

Contract Administration

Relevant Roles

Chief Procurement Officer

Procurement Manager

Vendor Relations Manager

Legal Counsel

Contract Manager

Supply Chain Director

Chief Legal Officer

Commercial Director

Business Development Manager

Operations Director

Chief Technology Officer

Risk Management Officer

Compliance Manager

Strategic Sourcing Manager

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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