Non Compete Agreement Between Business Partners Template for Philippines

The Non Compete Agreement Between Business Partners is a crucial legal document used in the Philippine business context when two or more individuals or entities enter into a business partnership and wish to protect their mutual interests from competition. This document becomes particularly important in situations involving shared business knowledge, client relationships, or proprietary information. It must comply with Philippine legislation, including the Civil Code, Competition Act, and relevant commercial laws, while establishing reasonable restrictions in terms of duration, geographic scope, and prohibited activities. The agreement typically includes detailed provisions on confidentiality, enforcement mechanisms, and remedies for breach, while being carefully drafted to ensure enforceability under Philippine jurisdiction. It serves as a protective measure against partners engaging in competitive activities that could harm the partnership's interests, while maintaining compliance with anti-trust and competition regulations.

1. Parties: Identification of the business partners entering into the non-compete agreement, including their full legal names, business addresses, and registration details

2. Background: Context of the business relationship, nature of the partnership, and reasons for entering into the non-compete agreement

3. Definitions: Clear definitions of key terms used in the agreement, including 'Confidential Information', 'Competing Business', 'Restricted Territory', and 'Restricted Period'

4. Scope of Non-Compete: Detailed description of prohibited competitive activities, including specific business types, roles, and activities that are restricted

5. Geographic Limitations: Clear definition of the territorial scope where the non-compete restrictions apply

6. Duration: Specified time period for which the non-compete obligations will remain in effect

7. Consideration: Description of the mutual benefits or consideration provided in exchange for the non-compete obligations

8. Exceptions and Permitted Activities: Specific activities or circumstances that are exempted from the non-compete restrictions

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

10. Breach and Remedies: Consequences of violating the agreement and available remedies, including injunctive relief

11. Governing Law and Jurisdiction: Specification of Philippine law as governing law and designation of courts having jurisdiction

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