Business Partner Non Compete Agreement for the United Kingdom

Business Partner Non Compete Agreement Template for England and Wales

A legally binding agreement governed by English and Welsh law that restricts a business partner from engaging in competitive activities after leaving a partnership or business relationship. The agreement specifies geographic limitations, time duration, and scope of restricted activities, ensuring compliance with UK competition law and common law principles regarding restraint of trade. It includes provisions for protecting confidential information, intellectual property, and customer relationships.

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What is a Business Partner Non Compete Agreement?

The Business Partner Non Compete Agreement is essential when partners or key stakeholders leave a business relationship, particularly in England and Wales where specific legal requirements must be met. This document helps protect legitimate business interests by preventing former partners from competing directly, soliciting clients, or misusing confidential information. It must be carefully drafted to ensure enforceability under English law, with reasonable restrictions in terms of duration, geographic scope, and activities. The agreement typically includes detailed provisions about restricted activities, consideration, and enforcement mechanisms, while complying with UK competition law and common law principles.

What sections should be included in a Business Partner Non Compete Agreement?

1. Parties: Identification and details of all parties to the agreement

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

3. Definitions: Key terms used throughout the agreement including relevant legislation and legal principles

4. Scope of Restrictions: Detailed description of prohibited activities and protection of legitimate business interests

5. Duration: Time period for restrictions with justification for reasonableness

6. Geographic Scope: Territorial limits of restrictions with justification for extent

7. Consideration: Value exchanged for the restrictions to ensure enforceability

8. Confidentiality Obligations: Protection of sensitive information and trade secrets

9. Enforcement: Remedies and consequences of breach including injunctive relief

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

1. Garden Leave: Provisions for paid leave during notice period when immediate departure might risk business interests

2. Post-Termination Assistance: Obligations to assist after leaving, particularly for handover periods

3. Non-Solicitation of Employees: Additional restrictions on hiring former colleagues to protect against team poaching

What schedules should be included in a Business Partner Non Compete Agreement?

1. Schedule of Restricted Businesses: List of specific competitors or business types covered by restrictions

2. Schedule of Restricted Territories: Detailed geographic areas covered by restrictions with maps or specific boundaries

3. Schedule of Confidential Information: Specific categories of protected information and trade secrets

4. Schedule of Existing Clients: List of clients covered by non-solicitation provisions and business relationships

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

Jurisdiction

England and Wales

Publisher

Genie AI

Cost

Free to use
Industries

Restraint of Trade Doctrine: Common law principle that governs the enforceability of restrictive covenants, requiring them to be reasonable and protecting legitimate business interests

Competition Act 1998: Primary UK legislation governing competition law, prohibiting anti-competitive agreements and abuse of dominant market position

Enterprise Act 2002: UK legislation providing framework for merger control and market investigations in competition matters

Article 101 TFEU: Retained EU law post-Brexit prohibiting anti-competitive agreements that may affect trade and competition

Contract Law Common Law Principles: Fundamental principles governing contract formation, interpretation, and enforcement in English law

Unfair Contract Terms Act 1977: Legislation regulating unfair terms in contracts, particularly those limiting liability or creating unreasonable restrictions

Misrepresentation Act 1967: Law governing false statements made during contract formation that induce parties to enter into agreements

Partnership Act 1890: Primary legislation governing the rights and duties of business partners in traditional partnerships

Limited Partnerships Act 1907: Legislation governing the formation and operation of limited partnerships

Limited Liability Partnerships Act 2000: Law governing the creation and operation of LLPs, combining partnership flexibility with limited liability

Employment Rights Act 1996: While not directly applicable, provides comparative guidance on reasonable restrictions in professional relationships

Equality Act 2010: Ensures non-compete provisions do not discriminate unfairly against protected characteristics

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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