The Non Compete Agreement Sale Of Business Template is essential when transferring business ownership in England and Wales. It provides crucial protection for buyers by preventing sellers from immediately competing with the business they've sold. The agreement typically includes specific restrictions on competition, customer solicitation, and employee recruitment, with defined geographic and temporal limits. This document is particularly important in protecting goodwill, customer relationships, and confidential information transferred during the sale. It must be carefully drafted to ensure enforceability under English law, balancing legitimate business protection with reasonable restrictions.
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1. Parties: Identification and details of the seller and buyer
2. Background: Context of the business sale and purpose of the non-compete provisions
3. Definitions: Key terms used throughout the agreement including Business, Territory, Restricted Period
4. Non-Compete Obligations: Core restrictions on competitive activities
5. Duration: Time period for which restrictions apply
6. Geographic Scope: Territorial limits of restrictions
7. Consideration: Value provided in exchange for non-compete obligations
1. Non-Solicitation of Employees: Restrictions on hiring former employees (use when protecting key staff is crucial)
2. Non-Solicitation of Customers: Restrictions on approaching former customers (use when customer relationships are vital)
3. Confidentiality Provisions: Additional protection of sensitive information (use when separate confidentiality agreement doesn't exist)
4. Garden Leave: Terms for paid non-competition period (use when seller remains employed)
1. Schedule of Restricted Activities: Detailed list of prohibited business activities
2. Schedule of Territory: Detailed description of geographic areas covered by restrictions
3. Schedule of Protected Customers: List of specific customers covered by non-solicitation provisions
4. Schedule of Consideration: Breakdown of payment or consideration structure
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