RESTRAINT OF TRADE AGREEMENT
Summary A company that wants to prevent an employee, agent or business associate from conducting competing business activities can use a Restraint of Trade Agreement.
Who should use a Restraint of Trade Agreement? Businesses regularly disclose confidential information to employees, agents or business associates, including exposing people to trade secrets, sensitive business information, valuable contacts and proprietary product information. The use of that confidential and sensitive information against or in competition with the business can cause extensive loss and damage to the company. A written restraint can be used to prevent the employee or business associate from competing with the business.
See also our Non-Disclosure Agreements
What does the restraint say? The Restraint of Trade undertaking consists of: The period of the restraint; The activities that fall under the restraint; The geographical areas that the restraint is applicable to; Recourse in the event of default.
What does the document look like? The template restraint of trade can be printed onto two pages.
What do you need to do to use the agreement?
- Complete the sample restraint agreement as indicated (eg. Fill in names, the restraint period and activities etc)
- Sign the completed agreement, and get the Restrainee to sign as well.
Also viewed: Employee Secrecy Agreement
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