Legal updates

A contractual obligation of non-compete must be made by an explicit agreement. Read more at: http://www.afiklaw.com/updates/8840

February 6, 2019
Print

Parties entered into a joint venture agreement under which one of the parties committed to bring its customers to the other. Later, that one established a new company dealing in a similar field.

The Court rejected the claim filed for breach of non-compete obligation and held that there is no general limitation on competition under law and such a limitation must be made clearly and unequivocally in a non-competition agreement between the parties. Additionally, not all business information with financial value is a "trade secret" that will be protected under law. Insofar as it relates to information that can be disclosed by others, even with reasonable effort, it will not be considered a trade secret. Here there is no contractual non-compete obligation and thus it may not be held that any of the parties conducted illegal competition.