Legal Question in Business Law in Virginia

NDAs and Non Competes

A potential client wants me to sign an NDA and Non-Compete under both my name and my company name (LLC/I'm the principal owner). His concern is that I could 'freelance' outside of my company and bypass the NDA/Non-Compete. My concern is that I'm putting myself personally at stake rather than the business. What kind of language can I use to ensure that both of our concerns are addressed?


Asked on 3/26/08, 1:01 pm

3 Answers from Attorneys

Michael Hendrickson Law Office Michael E. Hendrickson

Re: NDAs and Non Competes

I see no problem with the NDA(nondisclosure Agreement); however, as the other two attorneys have already suggested, the non-compete could prove more problematical.

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Answered on 3/27/08, 11:02 am
Ruth Emily Kochard Ruth Emily Kochard, Counselor at Law

Re: NDAs and Non Competes

Noncompete clauses are permissible and may be upheld, though they are disfavored and considered narrowly. The court essentially does a balancing act in looking at the reasonable business interests of the business seeking the clause, and, the employee's need to work. There is not one straightforward answer to this; and, since it is difficult to give you specific language that might protect your interests, I would suggest contacting an attorney directly who will be able to suggest appropriate language after a complete review of the work and business involved.

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Answered on 3/26/08, 1:13 pm
Christopher Davis Davis Law PLC

Re: NDAs and Non Competes

It is reasonably for him to want both you and your company to sign the contract. The problem is that many people sign these on behalf of their company and then personally violate them later. This makes enforcement difficult.

In your case, you need to look at:

1) duration;

2) geographic scope; and

3) the type of activities restricted.

In other words, see how long you are restricted and within what mile radius, and for what specifically. If the time or scope are too large, it may not be enforceable in Virginia anyway.

Specifically, these 3 things represent the language you should look for to protect your interests and concerns.

For something like this it is always wise to have an attorney look at the whole document to ensure your future interests are protected.

Please let me know if I can be of any assistance.

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Answered on 3/26/08, 1:20 pm


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