The Bassett Firm
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Main Phone Number : (214)219-9900
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Posts tagged "Non-Compete Agreements"

To Compete or Not to Compete: Enforcing Non-Compete Clauses in Texas

Contract.jpgThe 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 ยง 15.50(a).

Elements Needed in Non-Compete Agreements in Texas

In Texas, there are two elements that must be present when determining the validity of non-compete agreements: (1) the non-compete agreement must be ancillary to an otherwise enforceable agreement and (2) the non-compete agreement must contain reasonable limitations that are not too burdensome.

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