Restrictive Covenants | Non-Competition
A restrictive covenant, sometimes called a non-competition agreement, is an agreement saying that the person bound agrees not to do something ... a negative covenant. Sometimes it is designed to limit competition but there can be other purposes as well. Drafted properly, it may be enforceable. However, if drafted improperly, it may be entirely unenforceable.
Common Types of Restrictive Covenants
Restrictive Covenants can be found in many types of agreements. Some examples include:
The law has guidelines that restrictive covenants must meet in order to be enforceable. You won't find these guidelines in a piece of legislation giving you a list of points to follow. Instead, the rules can only be understood by reading many court decisions.
If an agreement attempts to do more than the law permits, or especially in the case of land, if the required elements are not present, the law will not lend a hand to repair the problem. The offending clause in an agreement will typically be void (invalid).
Contact me if you need help in drafting a restrictive covenant agreement or if you need help reviewing an existing agreement.
Notice: The information on this website is general in
nature only. It relates to Saskatchewan, Canada and may not be
applicable in your jurisdiction. It does not constitute legal
advice to you and no solicitor client relationship will be established.
You should seek specific legal advice regarding your circumstances
from a lawyer entitled to practise law in your jurisdiction.
www.rickcarlson.com | Fri, 19 Jan 2018 01:16:40 CST1
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