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Deed Of Non Competition

Deed Of Non Competition Template for South Africa

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Key Requirements PROMPT example:

Deed Of Non Competition

"I need a Deed of Non-Competition for our senior software developer who will be leaving the company on March 1, 2025, restricting them from working with competing firms in the Western Cape region for 24 months and preventing solicitation of our clients or employees."

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Document background
The Deed of Non Competition is a crucial legal instrument in South African business law, used to protect legitimate business interests while balancing constitutional rights to freedom of trade. It's commonly employed in various scenarios including business sales, employment terminations, and shareholder arrangements. The document typically specifies restricted activities, geographic limitations, and time periods, incorporating South African legal principles established through precedents like Magna Alloys. It's essential in protecting confidential information, customer relationships, and trade secrets, while ensuring enforceability through careful drafting that meets reasonableness requirements under South African law. The deed must consider both common law principles and statutory requirements, including the Competition Act and constitutional provisions.
Suggested Sections

1. Parties: Identification of the parties entering into the deed, including their full legal names, registration numbers (if companies), and physical addresses

2. Background: Context of the restraint, including the relationship between parties, legitimate business interests being protected, and basis for the restraint

3. Definitions: Detailed definitions of key terms, including 'Confidential Information', 'Competitive Activity', 'Territory', and 'Restraint Period'

4. Duration of Restraint: Clear specification of the time period during which the restraint obligations will be effective

5. Territorial Scope: Precise definition of the geographic area where the restraint applies

6. Prohibited Activities: Detailed description of activities the restricted party is prohibited from engaging in

7. Protection of Confidential Information: Obligations regarding non-disclosure and non-use of confidential information

8. Acknowledgments: Party's acknowledgment that restrictions are reasonable and necessary

9. Severability: Provisions allowing court to modify overly broad restrictions rather than invalidating entire agreement

10. Breach and Remedies: Consequences of breach and available remedies including interdict (injunctive relief)

11. General Provisions: Standard contract clauses including governing law, jurisdiction, and entire agreement

Optional Sections

1. Non-Solicitation of Employees: Additional restrictions on recruiting employees - typically included when protecting against poaching of staff

2. Non-Solicitation of Customers: Restrictions on approaching customers - relevant in sales-oriented businesses

3. Garden Leave: Provisions for paid leave during notice period - typically for senior employees

4. Consideration: Details of payment or benefit in exchange for restraint - necessary when standalone agreement

5. Monitoring and Reporting: Requirements for the restricted party to report on compliance - useful for high-risk situations

6. Exception for Shareholding: Allowing ownership of small percentages in listed companies - common in executive agreements

Suggested Schedules

1. Schedule 1: Restricted Territory: Detailed maps or lists of geographic areas covered by the restraint

2. Schedule 2: Competitive Business Activities: Comprehensive list of prohibited business activities and competitors

3. Schedule 3: Protected Customers: List of specific customers covered by non-solicitation provisions

4. Schedule 4: Protected Employees: Categories or list of employees covered by non-poaching provisions

5. Schedule 5: Confidential Information: Detailed categorization of protected confidential information

6. Appendix A: Consideration Calculation: Formula or details for calculating any consideration payable for the restraint

Authors

Alex Denne

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

alex.den.21@genieai.co
Relevant legal definitions








































Clauses






























Relevant Industries

Information Technology

Professional Services

Financial Services

Healthcare

Manufacturing

Retail

Telecommunications

Consulting

Engineering

Pharmaceuticals

Media and Entertainment

Legal Services

Real Estate

Education and Training

Research and Development

Relevant Teams

Legal

Sales

Executive Management

Research and Development

Product Development

Customer Relations

Business Development

Operations

Technical Services

Professional Services

Strategy

Marketing

Relevant Roles

Chief Executive Officer

Managing Director

Sales Director

Technical Director

Senior Developer

Account Manager

Business Development Manager

Research Scientist

Senior Consultant

Department Head

Regional Manager

Product Manager

Chief Technology Officer

Senior Sales Executive

Operations Manager

Key Account Manager

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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