Free non-compete agreement template to protect business interests. Covers restricted activities, geographic scope, duration, consideration, and enforcement provisions.
This Non-Compete Agreement ("Agreement") is entered into on [Date] between [Company Name] ("Company") and [Individual Name] ("Restricted Party"). WHEREAS the Company possesses valuable trade secrets, client relationships, and proprietary business methods; and WHEREAS the Restricted Party will have access to such information through their [employment/engagement]; the Parties agree as follows.
During the Restriction Period, the Restricted Party shall not, directly or indirectly: (a) engage in, own, manage, or operate any business that competes with the Company's [describe business area]; (b) solicit, divert, or take away any client or customer of the Company; (c) recruit, solicit, or hire any employee or contractor of the Company; (d) use or disclose any trade secrets or confidential information of the Company. "Competing Business" means any enterprise engaged in [specific industry/services].
The restrictions in this Agreement shall apply within [specific geographic area, e.g., a 50-mile radius of the Company's offices / the state of X / nationwide] for a period of [12/18/24] months following the termination of the Restricted Party's relationship with the Company (the "Restriction Period"). The Parties agree that this scope and duration are reasonable and necessary to protect the Company's legitimate business interests.
In consideration for the Restricted Party's obligations under this Agreement, the Company shall provide: [For new employees: employment and access to confidential information / For existing employees: a lump sum payment of (Amount) or continued employment / For business sales: the purchase price]. The Restricted Party acknowledges that this consideration is adequate and sufficient.
The Restricted Party acknowledges that a breach of this Agreement would cause irreparable harm to the Company. In the event of a breach, the Company shall be entitled to: (a) injunctive relief without the need to post a bond; (b) recovery of actual damages; (c) recovery of attorney's fees and costs. If any provision is found to be overly broad, the court is authorized to modify it to the minimum extent necessary to make it enforceable.
Signature — Party A
Signature — Party B
Step 1: Choose your non-compete template. Log in to ContractClaw Sign and select the Non-Compete Agreement template from your dashboard. This template covers restricted activities, geographic scope, duration, consideration, and enforcement provisions to protect your business interests.
Step 2: Customize the restriction terms. Fill in the Company name and the Restricted Party's full name. In the recitals, describe why the restriction is necessary — the trade secrets, client relationships, and proprietary methods the Restricted Party will access. Define the restricted activities precisely: competing businesses the party cannot engage in, client non-solicitation rules, employee non-recruitment provisions, and confidential information protections. Be specific about what constitutes a "Competing Business" in your industry.
Step 3: Set geographic scope and duration. Define the geographic boundary of the restriction — a radius around your offices, specific states or regions, or nationwide. Set the restriction period (typically 12-24 months after termination). Keep both scope and duration as narrow as reasonably necessary — overly broad restrictions are frequently struck down by courts. Check your jurisdiction: several US states (notably California) ban or severely limit non-competes.
Step 4: Define the consideration. Specify what the Restricted Party receives in exchange for agreeing to the non-compete: for new employees, employment itself and access to confidential information; for existing employees, a lump sum payment or bonus; for business acquisitions, the purchase price. Adequate consideration is critical for enforceability — some jurisdictions require more than just continued employment.
Step 5: Add signers. Enter the Company's authorized signatory (name, title, email) and the Restricted Party's full legal name and email. If this is part of an employment package, coordinate sending with the offer letter and other onboarding documents.
Step 6: Send for signature. Click Send — both parties receive the non-compete agreement via email and WhatsApp with OTP verification. The Restricted Party can review every restriction, the geographic scope, the duration, and the consideration before signing from any device.
Step 7: Track and download. Monitor signing status in your ContractClaw Sign dashboard. Once signed, the non-compete is sealed with a SHA-256 hash, RFC 3161 timestamp, and QR verification code. Download the executed PDF anytime — you will need it if enforcement becomes necessary.
Free NDA template for protecting confidential business information. Covers mutual and unilateral confidentiality obligations, exclusions, and remedies.
View templateFree offer letter template for hiring new employees. Covers position details, compensation, benefits, start date, at-will employment, and conditions of employment.
View templateFree independent contractor agreement template. Covers contractor status, scope, payment, tax obligations, insurance requirements, and work product ownership.
View templateDisclaimer: This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction. Consult a qualified legal professional before using this document for any binding agreement. ContractClaw Sign is not a law firm and does not provide legal services.
Sign with OTP verification, QR codes, and RFC 3161 timestamps. Free for 5 documents per month.
Start Signing Free