If we are in the construction business and would like to subcontract some of our work out, what would happen if we had them sign a non-compete agreement?

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If we are in the construction business and would like to subcontract some of our work out, what would happen if we had them sign a non-compete agreement?

We have found a company willing to do this work but would like to have them sign a non-compete agreement. Would this agreement hold up in court should the company try to take our customers away given the specific location and timeframe are outlined in the agreement?

Asked on April 13, 2015 under Business Law, Florida

Answers:

S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

Non-competitive agreements are upheld by the court as long as they are reasonable and limited in time, scope, and proximity.

If the court determines that a non-competitive agreement is overbroad, the court can limit its duration, scope, and proximity to render the agreement enforceable.


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