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Mutual Non Compete Agreement Template for England and Wales

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Key Requirements PROMPT example:

Mutual Non Compete Agreement

"I need a Mutual Non Compete Agreement for my tech consultancy firm and a potential business partner in London, restricting us both from competing in the UK cloud services market for 2 years from January 2025."

Document background
The Mutual Non Compete Agreement is designed for situations where two parties wish to protect their respective business interests while engaging in a business relationship or following its termination. This document, governed by English and Welsh law, defines the scope of non-competition, including restricted activities, geographical boundaries, and time periods. It's particularly relevant for business partnerships, joint ventures, or situations involving sensitive commercial information. The agreement must be carefully drafted to ensure enforceability under common law principles and competition regulations.
Suggested Sections

1. Parties: Identification and details of the contracting parties

2. Background: Context and purpose of the agreement, including the nature of the parties' businesses and their legitimate interests requiring protection

3. Definitions: Key terms used throughout the agreement, including specific business activities, territories, and competitive activities

4. Scope of Non-Compete: Specific restrictions and obligations including prohibited activities and business areas

5. Duration: Time period for which the restrictions will remain in force

6. Geographic Limitations: Territorial scope of restrictions and specific markets covered

7. Consideration: Details of mutual benefits exchanged between the parties

8. Governing Law: Specification of English and Welsh law as governing law and jurisdiction

Optional Sections

1. Specific Industry Restrictions: Additional restrictions specific to particular industry sectors or business activities

2. Customer Non-Solicitation: Specific provisions preventing parties from soliciting or dealing with each other's customers

3. Employee Non-Solicitation: Provisions preventing the hiring or solicitation of each other's employees

4. Intellectual Property Protection: Additional provisions protecting intellectual property rights and confidential information

Suggested Schedules

1. Schedule 1 - Restricted Activities: Detailed list of specific activities, products, or services that are prohibited under the agreement

2. Schedule 2 - Restricted Territories: Detailed map or list of geographical areas where restrictions apply

3. Schedule 3 - Restricted Customers: List of specific customers or customer categories covered by the restrictions

4. Schedule 4 - Consideration Details: Detailed breakdown of mutual benefits, payments, or other consideration exchanged

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions




















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Relevant Industries
Relevant Teams
Relevant Roles
Industries

Common Law Restraint of Trade Doctrine: Fundamental principle governing non-compete clauses, requiring them to be reasonable in scope, duration, and geographic area, while protecting legitimate business interests

Competition Act 1998: Primary legislation ensuring the agreement doesn't constitute anti-competitive behavior, particularly relevant for agreements between businesses

Trade Secrets (Enforcement, etc.) Regulations 2018: Legislation protecting confidential information and trade secrets, relevant for defining protected information within the agreement

European Union (Withdrawal) Act 2018: Governs retained EU law relating to competition and post-Brexit regulations that may affect non-compete agreements

English Contract Law Principles: Core legal principles including consideration requirements, certainty of terms, and intention to create legal relations

Employment Rights Act 1996: Legislation governing employment relationships and employee protection provisions that may affect non-compete terms

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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