Question

ahmed is hired to do computer sales for an electronics store. he agrees that if he leaves his employment, he will not work for another computer store within 25 miles for a period of two years. that type of agreement is called a(n)

Answer 1

Ahmed’s agreement can be called a covenant not to compete.

In a covenant not to compete or a 'noncompete agreement' - one party undertakes not to take any actions that might make it more difficult for the other party to do business. This behavior often involves disclosing trade secrets or privileged findings acquired while employed by that employer or taking a job with a direct rival of that employer's. An employment agreement or a contract for the sale of a firm frequently contains a covenant not to compete.

A non-compete clause in an employment contract typically restricts the employee's use of resources from the present employer to benefit a new employer. A non-compete clause, for instance, would bar a consultant from moving her existing clients to a different consulting business.

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