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The Relationship Between Employment Agreements and Trade
The Relationship Between Employment Agreements and Trade

... In Electro-Craft Corp. v. Controlled Motion, Inc.,8 the Minnesota Supreme Court decided its first case under the Uniform Act. 9 The court considered the issue of whether employment agreements allow an employer to bring a tort cause of action for misappropriation under the Uniform Act. A crucial issu ...
RTF format
RTF format

... course must be read in conjunction with the new term. The plaintiff’s objection to the proposed amendment relates to the proposed introduction of the new term as an express term of the agreement, on the basis that the new term is not contained in the agreement and further that no legal basis exists ...
David Ritchie May 1, 2009 Page 1 08587-34160 557791
David Ritchie May 1, 2009 Page 1 08587-34160 557791

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The History of Contract Law
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outline 2 - NYU School of Law

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Non-compete clause

A non-compete clause (often NCC), or covenant not to compete (CNC), is a term used in contract law under which one party (usually an employee) agrees not to enter into or start a similar profession or trade in competition against another party (usually the employer). Some courts refer to these as ""restrictive covenants."" As a contract provision, a CNC is bound by traditional contract requirements including the consideration doctrine. The use of such clauses is premised on the possibility that upon their termination or resignation, an employee might begin working for a competitor or starting a business, and gain competitive advantage by exploiting confidential information about their former employer's operations or trade secrets, or sensitive information such as customer/client lists, business practices, upcoming products, and marketing plans. However, an over-broad CNC may prevent an employee from working elsewhere at all. English common law originally held any such constraint to be unenforceable under the public policy doctrine. Contemporary case law permits exceptions, but generally will only enforce CNCs to the extent necessary to protect the employer. Most jurisdictions in which such contracts have been examined by the courts have deemed CNCs to be legally binding so long as the clause contains reasonable limitations as to the geographical area and time period in which an employee of a company may not compete.The extent to which non-compete clauses are legally allowed varies per jurisdiction. Some jurisdictions, such as the state of California in the US, invalidate non-compete-clauses for all but equity stakeholders in businesses.
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