Non Solicitation Agreement Terms


    Non-solicitation agreements are becoming increasingly common in the business world. These agreements are designed to protect a company`s interests by preventing its employees from soliciting its clients or customers. If you`re a new or small business owner, it`s important to understand these agreements and their terms.

    What is a Non-Solicitation Agreement?

    A non-solicitation agreement is a legal contract that prohibits employees from soliciting customers or clients of their employer during and after their employment. These agreements are often included in employment contracts and can be used as a tool to protect businesses from losing customers to their competitors.

    Non-Solicitation Agreement Terms

    When drafting a non-solicitation agreement, there are several terms to consider. Here are some of the most common:

    Scope: This term outlines the specific customers or clients that are protected by the agreement. It`s important to be as specific as possible when defining the scope to avoid any confusion.

    Geography: This term defines the geographic area in which the agreement is applicable. It`s important to consider the company`s footprint and where its customers reside when defining this term.

    Time period: The time period of the agreement specifies the length of time that the employee is prohibited from soliciting the company`s customers or clients. This period typically ranges from six months to two years, depending on the industry and potential harm that could be caused.

    Consideration: Consideration refers to the payment or benefit that the employee receives in exchange for signing the non-solicitation agreement. This can include bonuses, stock options, or other perks.

    Enforceability: Non-solicitation agreements are only enforceable if they are reasonable in their scope, geography, and time period. If the terms of the agreement are too broad, it may not hold up in court.


    Non-solicitation agreements are becoming more common in the business world as companies strive to protect their interests. If you`re a new or small business owner, it`s important to understand these agreements and their terms. Consulting with a legal expert can help ensure that your non-solicitation agreement is legally binding and protects your business interests.