What is Non-Competition Clause?

A non-competition clause in a contract indicates that the parties, or more likely one of the parties, have agreed not to compete with the business of the contract for a set period of time after the contract expires or is terminated. To be enforceable, most judges will require that the time limit be reasonable and that any geographic non-competition provision be also reasonable in relation to the business of the contract. Non-competition clauses are common in the field of employment law.