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No compete agreement

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Sheila Albert

I am purchasing a service business and would like to sign the existing employees on some sort of agreement to the effect of: upon termination or resignation any employee cannot take existing clients of said business with them.

I am afriad that upon takeover, some employees may leave and take some or all of the clients that I have purchased through the sale of the business with them.

Is there such an agreement? How is it enforceable should a breech occur? Does the agreement need to specify the clients?

Any advise that you could offer is greatly appreciated. Thank you. Sheila Albert


Senior Member
You have a valid concern, and you could insist that as a conditon of your entering into the contract each employee have signed an employment agreement, or that some of the purchase price is contingent and the price goes down if employees leave and/or take clients with them. Whether the agreement will be valid or not depends on the state and the exact terms.

This is intended as general information only and NOT LEGAL ADVICE. You are not my client, and I have no obligation of any kind to you. To retain a lawyer, go to http://AttorneyPages.com


Yes there are the types of forms that you are talking about. They are called Non-Compete or competition agreements. You may be able to find one at WWW.Nolo.com, or you can always ask an employment law attorney near you. You can find one at attorneypages

Mark B. Replogle

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