Document background
The Business To Business Non Compete Agreement is a crucial document used when companies in India enter into business relationships where competitive protection is essential. This agreement is particularly relevant in scenarios such as business sales, joint ventures, strategic partnerships, or service agreements where one business needs to protect its legitimate interests from competitive activities by another business. The document must carefully balance business protection with Indian legal requirements, particularly Section 27 of the Indian Contract Act, which generally views restraint of trade as void unless reasonable and necessary. The agreement typically includes detailed provisions about restricted activities, territorial scope, duration, and specific carve-outs, along with enforcement mechanisms suitable under Indian law. It's essential to note that Indian courts generally take a more favorable view of B2B non-compete agreements compared to employment non-competes, provided they are reasonable and protect legitimate business interests.
