Non Compete Clause Clarification

Summary

Non-compete clauses are enforceable if they are reasonable in time, geographical area, and scope of activity. If your old company never intended to get into boat manufacturing, this might not be a similar business. However, it can depend on specific wording in your contract, and the judges interpretation. Consulting a lawyer is advisable.

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I sold my percentage in a company that does boat repair and rigging in San Antonio, TX. They are not a boat manufacturer. I am looking at buying a boat manufacturing business in Corpus Christi. in my contract with the previous company it sasy I can nont participate or in a similar business for five years with a similar business within any market region that were established or contemplated by the company before or during my tenure at the previous company. Would my old company have a case against me?
Hello ****,
Based on Texas Business & Commerce Code ยง *.*:
- Non-compete clauses are enforceable if they are "reasonable in time, geographical area, and scope of activity."
- If your old company never intended to get into boat manufacturing, this might not be a "similar business."
- However, it can depend on specific wording in your contract, and the judge's interpretation. Consulting a lawyer is advisable.