Can I keep a new business partnership from looking at replacements?

UPDATED: Oct 1, 2022

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Can I keep a new business partnership from looking at replacements?

I own an internet company and we will be signing a new contract with a hotel. We provide the hotel with internet to all rooms. We are wanting to keep other internet companies from also offering this service in the same location. Is there any legal grounds I could add to the contract to prevent this?

Asked on August 10, 2018 under Business Law, Texas


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

You can't stop them from "looking at" or considering replacements for your service. But during the term or duration of the contract, they can be obligated to use your service--that is, you can lock them into using (and therefore paying) you for length of the contract. So what you want to do is to get them to sign as long a contract as they will agree to, and if they should cancel your service, you can sue them for the profits you would have made for the remaining duration of the contract.
You can also include a clause in there that the contract will automatically renew for an additional term unless they provide written notice of nonrenewal during the least year of the contract, at least, say, 90 days prior to its expiration; that way, if they fail to specifically notify you that they are not renewing, the contract will continue in force.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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