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Mutual Non Compete Agreement

Mutual Non Compete Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Mutual Non Compete Agreement

"I need a Mutual Non-Compete Agreement for a joint software development project between our Dubai-based AI company and a Silicon Valley tech partner, to be effective from March 2025, with specific provisions protecting both parties' intellectual property and client relationships in the MENA region."

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Document background
The Mutual Non Compete Agreement is designed for business situations in the UAE where two or more parties need to protect their respective business interests while engaging in a commercial relationship. This document is particularly relevant when parties are sharing sensitive business information, entering into strategic partnerships, or engaging in joint ventures. The agreement must comply with UAE Federal Decree Law No. 33 of 2021 and Ministerial Resolution No. 47 of 2022, which set specific parameters for non-compete provisions, including maximum duration of 2 years and requirements for reasonable geographic and business scope restrictions. The document includes detailed sections on prohibited activities, confidentiality obligations, and enforcement mechanisms, all structured to ensure validity under UAE law. It's commonly used in technology transfers, business collaborations, and professional service arrangements where protecting competitive advantages is crucial.
Suggested Sections

1. Parties: Identification of all parties entering into the agreement, including full legal names and addresses

2. Background: Context of the agreement, nature of the parties' business relationship, and purpose of the non-compete provisions

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

4. Scope of Non-Compete: Detailed description of prohibited competitive activities, aligned with UAE law requirements for reasonable restrictions

5. Duration: Time period of the non-compete obligations (must not exceed 2 years as per UAE law)

6. Geographic Limitations: Specific territories where the non-compete restrictions apply, ensuring compliance with UAE reasonable geography requirements

7. Mutual Obligations: Specific commitments and restrictions agreed upon by both parties

8. Exceptions: Permitted activities and circumstances where non-compete restrictions don't apply

9. Confidentiality: Obligations regarding the protection and non-disclosure of confidential information

10. Remedies: Legal remedies available in case of breach, including injunctive relief and damages

11. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for dispute resolution

12. Term and Termination: Duration of the agreement and circumstances for termination

13. General Provisions: Standard clauses including severability, entire agreement, and amendments

Optional Sections

1. Non-Solicitation: Additional restrictions on soliciting employees, customers, or suppliers - used when parties have significant client/employee relationships

2. Assignment: Rights and restrictions regarding transfer of obligations - important for companies anticipating structural changes

3. Survival: Provisions that continue after agreement termination - used for complex business relationships

4. Training Compensation: Provisions for compensation of training costs - relevant when significant training investment is involved

5. Independent Contractor Status: Clarification of relationship between parties - important for non-employment arrangements

6. Corporate Authority: Warranties regarding authority to enter agreement - important for corporate entities

7. Alternative Dispute Resolution: Mediation or arbitration procedures - useful for international business relationships

Suggested Schedules

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

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

3. Schedule 3 - Confidential Information: Comprehensive list of types of confidential information covered by the agreement

4. Schedule 4 - Key Customers/Suppliers: List of specific customers or suppliers covered by non-solicitation provisions (if applicable)

5. Schedule 5 - Consideration: Details of any consideration or compensation provided in exchange for non-compete obligations

Authors

Alex Denne

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreement
Affiliate
Business Day
Competitive Business
Confidential Information
Disclosing Party
Effective Date
Force Majeure
Intellectual Property Rights
Material Breach
Permitted Purpose
Protected Business
Receiving Party
Restricted Activities
Restricted Period
Restricted Territory
Trade Secrets
Legitimate Business Interest
Business Relationship
Competitive Products
Competitive Services
Customer
Key Personnel
Related Entity
Sensitive Information
Strategic Information
Substantial Interest
Territory
Third Party
Working Hours
Relevant Industries

Technology and Software Development

Professional Services

Financial Services

Healthcare and Pharmaceuticals

Manufacturing and Industrial

Retail and E-commerce

Consulting Services

Research and Development

Oil and Gas

Real Estate and Construction

Educational Services

Telecommunications

Relevant Teams

Legal

Executive Leadership

Business Development

Sales

Research and Development

Information Technology

Operations

Strategy

Commercial

Product Development

Human Resources

Partnerships

Client Services

Relevant Roles

Chief Executive Officer

Managing Director

Business Development Manager

Senior Sales Executive

Technical Director

Research and Development Head

Chief Technology Officer

Operations Manager

Strategy Director

Product Manager

Senior Consultant

Partnership Manager

Chief Commercial Officer

Regional Director

Account Executive

Industries
UAE Federal Decree Law No. 33 of 2021 (New Labor Law): The primary legislation governing employment relationships in the UAE, including provisions related to non-compete clauses in employment contracts under Article 10.
Ministerial Resolution No. 47 of 2022: Specific regulations regarding non-compete clauses, including maximum duration (2 years), geographical scope, and nature of work restrictions.
UAE Federal Law No. 5 of 1985 (Civil Code): Provides general principles of contract law, including validity requirements and remedies for breach of contract.
Federal Decree-Law No. 50 of 2022 (Commercial Transactions Law): Governs commercial relationships and transactions between businesses, including provisions related to fair competition and business practices.
UAE Federal Competition Law (Federal Law No. 4 of 2012): Regulates anti-competitive practices and ensures fair competition in the market, which must be considered when drafting non-compete restrictions.
UAE Commercial Companies Law (Federal Law No. 2 of 2015): Relevant for non-compete agreements between companies, particularly regarding duties of directors and officers.
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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