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Business To Business Non Compete Agreement Template for England and Wales

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Key Requirements PROMPT example:

Business To Business Non Compete Agreement

"I need a Business To Business Non Compete Agreement to restrict a software development company from competing with our AI solutions business in the UK and EU markets for 24 months following our upcoming joint venture termination in March 2025."

Document background
The Business To Business Non Compete Agreement is essential when companies wish to protect their legitimate business interests while engaging in commercial relationships. Common scenarios include business sales, joint ventures, or supplier arrangements where one party gains access to sensitive information or market position. Under English and Welsh law, such agreements must be carefully drafted to ensure enforceability, with reasonable restrictions in terms of scope, duration, and geography. The document typically includes detailed provisions about prohibited activities, territorial limits, time periods, and consideration.
Suggested Sections

1. Parties: Identification and details of the contracting businesses

2. Background: Context of the agreement and business relationship

3. Definitions: Key terms used throughout the agreement including defined business activities, territory, and competition

4. Scope of Restrictions: Detailed description of prohibited activities and competitive restrictions

5. Duration: Time period for which restrictions apply and circumstances affecting duration

6. Geographic Scope: Territorial limits of the restrictions and jurisdictional boundaries

7. Consideration: Payment or other consideration for the restrictions including payment terms

8. Confidentiality Obligations: Protection of confidential information and trade secrets

9. Enforcement: Remedies and procedures for breach including injunctive relief

Optional Sections

1. Industry-Specific Restrictions: Additional restrictions specific to regulated industries or sectors

2. Group Company Provisions: Extension of restrictions to affiliated companies and corporate groups

3. Post-Termination Obligations: Specific obligations that continue after the business relationship ends

4. Non-Solicitation Provisions: Specific restrictions on approaching customers, employees, or suppliers

Suggested Schedules

1. Schedule 1 - Restricted Territory: Detailed map or list of geographical areas covered by the restrictions

2. Schedule 2 - Restricted Business Activities: Comprehensive list of prohibited business activities and sectors

3. Schedule 3 - Restricted Customers: List of protected customer relationships and business connections

4. Schedule 4 - Payment Schedule: Details of consideration payments including amounts, timing and payment methods

Authors

Alex Denne

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

Relevant legal definitions

























Clauses

























Industries

Common Law Restraint of Trade Doctrine: Fundamental principle that non-compete clauses are considered a restraint of trade. Must be reasonable in scope, duration, and geographic reach, and must protect legitimate business interests.

Competition Act 1998: Key legislation governing competition law in England and Wales. Must ensure non-compete provisions don't constitute anti-competitive behavior.

Enterprise Act 2002: Additional competition legislation that may impact the enforceability and scope of non-compete agreements between businesses.

EU Retained Law: Post-Brexit competition law principles retained from EU law that continue to influence UK competition regulations and business agreements.

Unfair Contract Terms Act 1977: Legislation governing the fairness and enforceability of contract terms, including restrictions in business-to-business agreements.

Trade Secrets (Enforcement, etc.) Regulations 2018: Legislation protecting trade secrets and confidential information, which often forms part of the justification for non-compete provisions.

Companies Act 2006: Primary legislation governing company operations in the UK, including matters of corporate capacity to enter into agreements.

Partnership Act 1890: Legislation governing partnerships, relevant when non-compete agreements involve partnership entities.

Contract Law Principles: Common law principles governing contract formation, including requirements for consideration, clarity, and mutual intent.

Industry-Specific Regulations: Sector-specific regulations that may impose additional requirements or restrictions on non-compete agreements in particular industries.

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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