What Is a Non-compete Agreement?

A non-compete agreement, or a non-competition clause, is done between an employer and an employee, with the latter completely agreeing to the terms of the former that he or she will not be able to engage in the same business while they are under legal contract and even if the employee leaves in case of expiration of contract, resignation, or termination.

How to Make a Non-compete Agreement?

non-compete agreement template

A non-compete agreement has become a needed instrument to assure businessmen to prohibit competition. Thus, many companies are now looking into drafting an NCA to prevent the ruin of business and limiting the number of employees violating the previously signed simple agreements to pursue new interests using information from former employers.

1. Put the Specific Title of the Document

A non-compete agreement is one, adding it with non-disclosure is another. Make it clear as to what document you want to produce; your title will convey its purpose.

2. Make Sure Information from Both Parties Are Correct

May it be the spelling of your name or the other party, it will have a huge impact on the case. Make it your duty to not skip reading the first part of your document.

3. Your Conditions Should Be Clear and Precise

The clauses, or the conditions thereof, should be checked before the signing of the sample agreement. Go over each condition carefully and make suggestions where it is needed. If apprehensive about what could be written, get the help of a legal counsel to draft the document.

4. Do Not Forget to Include Relevant Dates

Dates are big factors to consider when it comes to legal documents. Make sure you write the right dates; dates when the agreement was made, signed and notarized.

5. Make Sure the Signatures Are Visible

Signatures are one of the focal points of the document. A basic agreement needs to be signed in all pages; see to it that every page is completely filled up neatly. Also, do not forget to include your witnesses’ signatures; they are just as important as yours.

6. Read and Understand Everything

There is no such thing as being too guarded. In business, this is very common. Saying that you don’t know this or that does not guarantee you out of the contract agreement. Amending legal documents may take some time, so before you sign anything, you may seek a lawyer’s advice in case of doubt.

7. For Legal Purposes, Have It Notarized

It is completely your choice to have the document notarized. To make it legitimate, have it authenticated by a notary public. This is to ensure that your private agreement is legally binding and no forgery occurred and most importantly, there are no violations of rights.

8. Keep a Copy in a Safe Place

Legal and authenticated documents, like an agreement between two parties, are a very important form that upholds a great relevance specifically if it is business-related. Keep your copy in an area where both security and privacy are imposed. This may be inside a safe in the office or the bank if you are unsure of the safety of office vaults. If you are keeping it at home, use a fireproof safe. Also, another choice would be to scan it online and store it in your mail and other personal accounts. This is to provide you another copy in case of document loss.

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