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Valid Contract

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The chairperson of your committee has a special project for you. Your company is hiring an software engineer to specially design new software for the company's use, and the company wants to enter into a non-compete agreement with the software engineer. Your chairperson wants you to research whether there are any statutes or case law regarding non-compete agreements that should be addressed of before drafting the agreement.

Research the statutes and case laws in your state or country regarding non-compete agreements, and then draft a memorandum outlining your research. Include in your memorandum any issues that you feel that need to be addressed before drafting this agreement.

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Solution Summary

This posting discuses the important elements of a valid contract.

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Non-compete agreements mean that an employee agrees not to work for a competitor for a specific period of time. There are many issues that need to be addressed before creating an agreement that will stand in the court of law.

An important requirement is that the agreement should be reasonable. What does this mean? In practice, this means that the agreement should not prevent the employee from joining too many businesses. Also, the agreement should not cover businesses in an extremely large geographical area. Most, importantly, the time period should not be too long. For instance, a maximum time period of two years is accepted by courts to be reasonable.

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