Common Restrictive Covenants in Business Contracts | Mann & Elias
Skip links

Common Restrictive Covenants in Business Contracts

Speak to a Non-Compete Agreement Violation Attorney Los Angeles

In today’s business world, contracts have gotten more complex. This is especially true when businesses want to restrict employees from disclosing various details or working for competitors.

In these instances, employees who have signed a contract with their employer will find these contracts contain restrictive agreements or restrictive covenants. Non-compete agreements are legally binding and specifically restrict an individual from doing or saying certain things spelled out in the agreement. In some cases, those who sign are compensated for their cooperation.

However, should a person fail to live up to the agreement, their employer can sue them. If you need to know more about common restrictive covenants in business contracts, consult a Los Angeles workplace lawyer from Mann & Elias.

When Are These Agreements Most Often Used?

In many cases, restrictive covenants are used in business contracts involving high-level executives, media personalities, or others who may possess certain trade or business secrets or knowledge that would be very valuable to a company’s competition. Because of this, the restrictive covenants used in most employment contracts are particular and spell out what can or cannot be done or said by the employee during or after they leave the company. If you have questions regarding non-compete contracts, reach out to an employment attorney in LA who  residents trust from Mann & Elias.

Non-Compete Agreements

In many companies or business situations, a non-compete agreement will be used in an employment situation where an employer wants to restrict an employee’s ability to leave the company and immediately work for a competitor.

For example, if a media personality wants to leave their employer, their contract may have a non-compete agreement stating they must wait six months before being able to work for a nearby competitor.

In other situations, these restrictive covenants may be used in business sales agreements, which will involve an original owner agreeing not to compete with a new owner within a certain area and similar business. In return, the seller is usually compensated for their cooperation.

Are These Agreements Enforceable?

While non-compete agreements are very common and usually included in a wide variety of employment contracts, they are often tough to enforce from a legal standpoint. Many states refuse to recognize them due to the agreement’s restriction on trade. However, other states take a different approach. Instead, if they feel there is adequate money or benefits to offset the potential loss of income, the agreement may be enforced. Due to these complexities, always work with a lawyer to review a non-compete agreement in Los Angeles before signing.

Non-Solicitation Agreements

Along with non-compete agreements, non-solicitation agreements are also very common in business contracts. With these agreements, an employee who leaves a company agrees not to solicit other employees, clients or customers in the business. However, much like non-compete agreements, states have various views on them. Should questions arise, never hesitate to contact a non-compete agreement violation attorney in LA. At Mann & Elias, companies and employees across Los Angeles county have relied on our services to diffuse a lengthy legal dispute.

Nondisclosure Agreement

In many situations where confidentiality is of the utmost importance to a company or individual, a nondisclosure agreement will be part of a business arrangement (also known as a confidentiality agreement). This can involve having a person agree to not talk about or steal information, trade secrets, invention patents, or other information that is looked at as giving a company a competitive or financial advantage over its competitors. A non-compete agreement attorney in LA can help you learn more about the different types of similar agreements and disputes that are almost inevitable at some point.

What Problems Can Result from these Agreements?

Needless to say that whenever individuals sign these various types of agreements, situations do arise later on that lead to legal disputes. Since each restrictive covenant type focuses on preventing a person from doing or saying something related to another person or business, the underlying issue is how courts will choose to enforce such agreements.

In most cases, legal experts view these cases as ones where neither party wins. Since the legal battles are usually lengthy and costly, many believe that the damage done along the way will not be repaired by simply filing a lawsuit. However, that is not always the case. Depending on what has been done or said in violation of the agreement, courts may choose to take a harder look at what types of enforcement options may be available. Should the person’s negligence be apparent, an experienced LA workplace lawyer can help you recover compensation for damages.

Various Defenses to Signing Agreements

In some situations, individuals may attempt to say they signed an agreement under duress or were unclear about the terms in the contract. However, saying this and proving this are two different things.

It is crucial to have experienced and knowledgeable legal representation in these matters. Should you find yourself needing a lawyer to review the terms of your agreement, appeal the contract, or hold a negligent employer accountable, Mann & Elias are here to help every step of the way. They have a long track record of successful cases and are experts in this practice area.


    This website uses cookies to improve your web experience.
    Call| Text |