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Non Compete Non Disclosure Agreement Template for Pakistan

A comprehensive legal agreement governed by Pakistani law that combines non-compete and confidentiality provisions to protect business interests, trade secrets, and prevent unfair competition. The document is structured in accordance with Pakistan's Contract Act 1872 and relevant common law principles, incorporating both restrictions on competitive activities and obligations to maintain confidentiality of sensitive information. It includes specific provisions for enforcement under Pakistani jurisdiction while ensuring compliance with constitutional rights regarding freedom of trade and business under Article 18 of the Constitution of Pakistan.

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What is a Non Compete Non Disclosure Agreement?

This Non-Compete Non-Disclosure Agreement is essential for businesses operating in Pakistan who need to protect their confidential information and prevent unfair competition from former employees, contractors, or business partners. The document is particularly relevant in today's competitive business environment where employee mobility and access to sensitive information have increased significantly. It incorporates provisions compliant with Pakistani law, including the Contract Act 1872 and relevant common law principles, while ensuring reasonable restrictions that courts will enforce. The agreement is designed to protect trade secrets, customer relationships, and business methodologies while balancing the constitutional right to trade and business under Pakistani law. It includes comprehensive definitions of confidential information, specific territorial restrictions, and clear duration terms for non-compete obligations.

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

1. Parties: Identification of the parties entering into the agreement, including their legal names, addresses, and any relevant registration numbers

2. Background: Context of the agreement, relationship between the parties, and purpose of entering into the agreement

3. Definitions: Detailed definitions of key terms including 'Confidential Information', 'Trade Secrets', 'Competitive Activities', 'Territory', and 'Restricted Period'

4. Confidentiality Obligations: Core obligations regarding the protection, non-disclosure, and permitted uses of confidential information

5. Non-Competition Covenant: Specific restrictions on competitive activities, including scope, duration, and geographical limitations

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

7. Return of Confidential Information: Obligations regarding the return or destruction of confidential information upon termination or request

8. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

9. Remedies: Available remedies in case of breach, including injunctive relief and damages

10. Governing Law and Jurisdiction: Specification of Pakistani law as governing law and jurisdiction for dispute resolution

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

1. Dispute Resolution: Detailed procedures for resolving disputes, including mediation or arbitration provisions. Include when parties prefer alternative dispute resolution to court proceedings.

2. Survival Clause: Specifies which obligations survive termination of the agreement. Important when dealing with long-term confidentiality obligations.

3. Assignment and Succession: Rules regarding transfer of rights and obligations. Include when dealing with corporate parties or potential M&A scenarios.

4. Specific Technology Protection: Additional provisions for protecting specific technical information or intellectual property. Include when dealing with technical trade secrets or IP.

5. Garden Leave Provisions: Provisions for paid non-compete period. Include when dealing with senior employees or executives.

6. Carve-outs and Exceptions: Specific exceptions to confidentiality or non-compete obligations. Include when certain activities or information need to be excluded from restrictions.

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

1. Schedule 1: Restricted Territory: Detailed definition of geographical areas where non-compete restrictions apply

2. Schedule 2: Confidential Information Categories: Specific categories and examples of confidential information covered by the agreement

3. Schedule 3: Restricted Business Activities: Detailed description of prohibited competitive activities

4. Schedule 4: Consideration Details: Details of any consideration provided for the non-compete obligations

5. Appendix A: Security Protocols: Specific procedures for handling and protecting confidential information

6. Appendix B: Return/Destruction Certificate: Template certificate for confirming return or destruction of confidential information

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

Pakistan

Publisher

Ƶ

Cost

Free to use

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