The Non-Compete Sales Agreement is essential in Australian business contexts where protecting sales territories, customer relationships, and proprietary sales methods is crucial. This document is commonly used when hiring senior sales staff, during business sales transactions, or establishing sales partnerships. It must be carefully drafted to ensure compliance with Australian competition law, including the Competition and Consumer Act 2010 and state-specific fair trading legislation. The agreement typically specifies restricted activities, geographical limitations, and duration of non-compete obligations, while maintaining reasonableness to ensure enforceability in Australian courts. Key considerations include the scope of restricted activities, consideration provided, and the balance between protecting legitimate business interests and maintaining fair competition.
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1. Parties: Identifies and provides full details of all parties to the agreement
2. Background: Outlines the context and purpose of the agreement, including the business relationship between the parties
3. Definitions: Defines key terms used throughout the agreement
4. Consideration: Details the payment or other valuable consideration provided in exchange for the non-compete obligations
5. Non-Compete Obligations: Specifies the restricted activities, including precise description of prohibited business activities
6. Geographic Scope: Defines the territorial limits of the non-compete restrictions
7. Duration: Specifies the time period for which the non-compete obligations will remain in effect
8. Customer Non-Solicitation: Prohibits solicitation of customers or clients of the protected business
9. Employee Non-Solicitation: Prohibits solicitation of employees of the protected business
10. Acknowledgments: Contains party acknowledgments regarding the reasonableness of restrictions
11. Breach and Remedies: Outlines consequences of breach and available remedies including injunctive relief
12. General Provisions: Standard clauses including governing law, severability, and entire agreement
1. Intellectual Property Protection: Additional provisions protecting IP rights if not covered in a separate agreement
2. Confidentiality Obligations: Detailed confidentiality provisions if not covered in a separate NDA
3. Sale of Business Provisions: Specific provisions related to business sale if the non-compete is part of a business sale transaction
4. Carve-Out Provisions: Specific exceptions to the non-compete restrictions
5. Assignment Rights: Rights to assign the agreement to other parties, particularly relevant in corporate restructuring
6. Training and Support: Provisions for any training or support provided as part of the consideration
7. Dispute Resolution: Specific dispute resolution procedures beyond standard court proceedings
1. Schedule 1 - Restricted Activities: Detailed list of specific activities that are prohibited
2. Schedule 2 - Restricted Territory: Detailed maps or descriptions of the geographic areas covered by the restrictions
3. Schedule 3 - Consideration Details: Detailed breakdown of payment terms, amounts, or other consideration
4. Schedule 4 - Protected Customers: List of specific customers or customer categories covered by non-solicitation provisions
5. Schedule 5 - Cascading Clauses: Series of alternative restrictions of varying scope to ensure enforceability
6. Appendix A - Acknowledgment Form: Form for periodic acknowledgment of ongoing compliance
7. Appendix B - Compliance Certificate: Template for certification of compliance with agreement terms
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