If I have a business partner who owns a competing business, what type of legal agreement should we have to ensure that my partner is not competing with our business?

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If I have a business partner who owns a competing business, what type of legal agreement should we have to ensure that my partner is not competing with our business?

I am 50% partner in LLC, an accounting office. My partner owns another accounting office in different county but in the same city. I want to make sure that my partner is not taking existing customers or directing new customers to his office instead of our office?

Asked on January 15, 2015 under Business Law, Florida

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

It can be as simple as a short paragraph stating that neither partner will take customers from the other, or direct potential customers who approach office A to office B instead. Work out working that the two of you are both comfortable with, make sure you are each getting something in the agreement ("consideration"), then sign and date--you can then enforce it. If in doubt about drafting it, any business or contract attorney can help you.


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