December 2015 Archives

The Covenants Not to Compete Act (the "Act") governs the enforceability of non-competition and non-solicitation agreements. To be enforceable under the Act, an agreement must (1) be ancillary to an otherwise enforceable agreement at the time the agreement is made and (2) contain reasonable limitations as to time, geographic area, and scope of activity that only restrain the promisor to the extent necessary to protect the promisee's good will or other business interest. Tex. Bus. & Com. Code § 15.50(a).