Document background
The Non-Compete Contract serves as a crucial legal instrument in Pakistani business relationships, designed to protect legitimate business interests while maintaining compliance with local laws. It is commonly used when onboarding key employees, during business acquisitions, or in professional service arrangements where parties gain access to sensitive information or valuable business relationships. The document must carefully balance the employer's need to protect proprietary information and customer relationships against the constitutional right to trade under Pakistani law. Key considerations include the Contract Act 1872's provisions on restraint of trade, the Competition Act 2010's requirements, and relevant court precedents that guide the enforceability of such restrictions. The agreement typically specifies restricted activities, geographical limitations, and duration, supported by appropriate consideration to ensure validity.
