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Non Compete Partnership Agreement for the United Kingdom

Non Compete Partnership Agreement Template for England and Wales

A Non-Compete Partnership Agreement under English and Welsh law is a legally binding document that restricts partners from engaging in competitive business activities during and after their partnership tenure. It sets out specific limitations on geographical area, time period, and scope of restricted activities, while ensuring compliance with competition law and the doctrine of restraint of trade. The agreement must balance protecting legitimate business interests with reasonable restrictions that are enforceable under English and Welsh jurisdiction.

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What is a Non Compete Partnership Agreement?

The Non Compete Partnership Agreement is essential when partners need to protect their business interests from competitive activities by current or departing partners. This document, governed by English and Welsh law, typically includes detailed provisions on restricted activities, geographical limitations, duration of restrictions, and consequences of breach. It's particularly crucial during partner transitions, mergers, or when establishing new partnerships, ensuring that confidential information, client relationships, and business opportunities remain protected while maintaining compliance with competition law and reasonable restraint of trade principles.

What sections should be included in a Non Compete Partnership Agreement?

1. Parties: Identification and details of all partnership parties

2. Background: Context of the agreement and relationship between parties

3. Definitions: Key terms used throughout the agreement

4. Scope of Non-Compete: Detailed description of prohibited activities

5. Duration: Time period for non-compete restrictions

6. Geographic Limitations: Territorial scope of restrictions

7. Confidentiality Obligations: Protection of sensitive business information

8. Remedies for Breach: Consequences and available remedies for violation

What sections are optional to include in a Non Compete Partnership Agreement?

1. Garden Leave: Terms for paid leave during notice period - use when partners may be required to serve notice period away from business

2. Non-Solicitation: Restrictions on approaching clients or employees - use when protecting client relationships is crucial

3. Consideration: Financial compensation for restrictions - use when specific payment is offered for non-compete obligations

What schedules should be included in a Non Compete Partnership Agreement?

1. Schedule 1: Restricted Territory: Detailed map or list of geographic areas covered

2. Schedule 2: Restricted Clients: List of protected client relationships

3. Schedule 3: Restricted Business Activities: Detailed list of prohibited business activities

4. Appendix A: Consideration Details: Payment terms and schedule if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

England and Wales

Publisher

Ƶ

Cost

Free to use

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