Non compete agreement
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Non compete agreement
I used to work for a company that required me to sign a non-compete agreement. It was a local own business by one owner. someone bought her out and they are now doing a 50/50 equity thing they also changed the business name and moved offices. So I am wondering since they did all of that is that contract that I signed now void if I never did sign the new one with the new name and both owner’s names?
Asked on September 28, 2016 under Business Law, South Carolina
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
The contract may well still be valid:
1) If the company had been a LLC or corporation and the buyer purchased the actual LLC or corporation, then they bought the legal entity with which you'd signed the agreement, and owning the entity with which you'd contracted--and that entity presumably still being in existence--the agreement would still be in effect.
2) Even if the business had not been an LLC or corporation--or if it had been, but the buyer did not buy the LLC or corporation, only the assets--the old company could have "assigned," or turned the agreements over to, the new company, which could have taken them on, in which case they'd still be in effect.
Without knowing more facts or specifics of this situation, it is impossible to answer your question definitively, but as discussed above, there are definitely scenarios under which you are still obligated or bound by the non-compete agreement, and you cannot simply assume it is void.
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