What is this document?
A non-compete agreement (or non-competition clause) is a contract in which one party agrees not to compete with the other party's business for a specified time and within a defined territory. It may be standalone or embedded in an employment contract, freelancer agreement, or sale of business. Indian courts scrutinize such clauses and may refuse to enforce overly broad restrictions that amount to a restraint of trade.
When do you need it?
- Protecting client relationships when a sales employee resigns
- Restricting a departing co-founder from launching a direct competitor
- Safeguarding proprietary methods after training key staff
- Part of a business sale where the seller agrees not to compete
- Complementing an NDA for contractors with market-facing roles
Key clauses and elements
- Parties and relationship — employer, company, or buyer and the restricted person
- Restricted activities — specific competing businesses or roles covered
- Duration — how long restrictions apply after exit
- Geographic scope — cities, states, or India-wide limits
- Consideration — salary, equity, or sale consideration supporting enforceability
- Confidentiality linkage — connection to trade secrets and client data
- Remedies — injunctions and damages for breach
Frequently asked questions
Related documents
DraftPe generates non-compete agreements with clear scope, duration, geographic limits, and remedies suited to Indian legal context. The wizard captures party details, restricted activities, consideration, and survival period after termination.
Learn when non-compete clauses are used and what makes them enforceable in the sections below, then complete the wizard.