Non-Compete Agreement

In order to protect their substantial investment, many times a buyer of a business will require that the seller refrain from going into competition with the buyer subsequent to the sale. Texas law limits the scope of any non-competition agreement, since it is not fair to prevent another person from practicing his trade. As a result, non-competition agreements must be limited to a reasonable time and a reasonable area; moreover, a non-compete agreement must be evidenced by compensation over and above the agreed sales price of the business interest.