noncompete clause

Noun.  (legal) A provision within a business agreement or employment contract which stipulates that the contracting party must abstain from competitive practices not in the interests of an identified firm, such as starting a competing business or accepting a job with a competitor, and often extending for a period of time after the termination of the original employment or other business relationship.

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This entry was last updated on RefTopia from its source on 3/20/2012.