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Company To Company Non Compete Agreement Template for England and Wales

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Key Requirements PROMPT example:

Company To Company Non Compete Agreement

"I need a Company to Company Non Compete Agreement to restrict a software development company from competing with our AI technology business in the UK and EU markets for 3 years following our upcoming joint venture termination in March 2025."

Document background
A Company to Company Non Compete Agreement is crucial when businesses wish to protect their commercial interests following a transaction or collaboration. This document, governed by English and Welsh law, establishes clear boundaries for future business activities, typically following mergers, acquisitions, joint ventures, or strategic partnerships. It defines specific restrictions on business activities, geographical territories, and time periods, ensuring compliance with competition law while protecting legitimate business interests. The agreement must be carefully drafted to balance enforceability under common law principles with the need for effective business protection.
Suggested Sections

1. Parties: Identification of the contracting companies, including registered addresses and company numbers

2. Background: Context of the agreement, business relationship between parties, and purpose of restrictions

3. Definitions: Key terms including Restricted Business, Territory, Confidential Information, and Restriction Period

4. Non-Compete Obligations: Core restrictions including business activities, geographical areas, and duration

5. Duration: Time period for which restrictions apply

6. Consideration: Details of consideration provided for the restrictions

7. Governing Law and Jurisdiction: Specification of English and Welsh law governance and courts' jurisdiction

Optional Sections

1. Non-Solicitation Provisions: Additional restrictions on approaching customers/suppliers. Include when protecting customer/supplier relationships is crucial

2. Group Company Provisions: Extension of restrictions to group companies. Include when parties are part of larger corporate groups

3. Carve-outs: Specific exemptions to restrictions. Include when certain activities need to be excluded from restrictions

4. Assignment: Rights to transfer the agreement. Include when transfer rights are important to either party

Suggested Schedules

1. Schedule 1 - Restricted Territory: Detailed map or list of geographical areas covered by restrictions

2. Schedule 2 - Restricted Activities: Detailed description of prohibited business activities

3. Schedule 3 - Group Companies: List of relevant group companies covered by the agreement

4. Schedule 4 - Existing Commitments: List of pre-existing obligations or contracts excluded from 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




















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Industries

Competition Act 1998: Primary UK legislation governing competition law, prohibiting anti-competitive agreements and abuse of dominant market position. Must ensure non-compete provisions don't violate these restrictions.

Enterprise Act 2002: Provides framework for UK competition law enforcement and market investigations. Relevant for ensuring non-compete agreements don't create market distortions.

Article 101 TFEU: EU legislation still relevant post-Brexit for agreements affecting EU trade. Prohibits agreements that prevent, restrict or distort competition within the EU market.

Restraint of Trade Doctrine: Common law principle requiring that restrictive covenants must be reasonable and go no further than necessary to protect legitimate business interests.

Nordenfelt Test: Common law reasonableness test from Nordenfelt v Maxim Nordenfelt [1894] establishing that restrictions must be reasonable between parties and in public interest.

Contract Formation Principles: Common law requirements for valid contract formation including offer, acceptance, consideration, and intention to create legal relations.

Contracts (Rights of Third Parties) Act 1999: Legislation governing how third parties may enforce terms of a contract, relevant for ensuring non-compete restrictions don't improperly affect third parties.

Trade Secrets Regulations 2018: UK regulations protecting against unlawful acquisition, use and disclosure of trade secrets, important for defining protected information in non-compete agreements.

European Union (Withdrawal) Act 2018: Post-Brexit legislation determining application of retained EU law in UK, affecting how competition law principles are applied.

Legitimate Business Interests Test: Legal requirement that non-compete restrictions must protect legitimate business interests and be no wider than necessary for such protection.

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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