Legal Question in Business Law in California

no compete clause - a way around it

Is there a way around a 'No compete' clause in a contract, if you leave a company and want take your clients with you and continue to do the same business?


Asked on 1/22/08, 3:16 pm

1 Answer from Attorneys

Re: no compete clause - a way around it

You are entering dangerous ground.

You are confusing two different issues.

Issue 1: Can you get around a non-compete clause/agreement. General rule in California is that non-compete clause is not enforceable. Please note that there are exceptions.

Issue 2: Taking "YOUR" clients with you. A lot of people, especially salespeople, consider the people with whom they work to be "their" clients/customers. If you are an employee (as opposed to independent contactor) the good will that you built up in that relationship belongs not to you but to your employer. In other words, the clients are your former employer's, NOT yours.

You really need to have a consultation with an attorney to discuss what you can and cannot do to compete fairly.

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Answered on 1/22/08, 3:36 pm


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