Legal Question in Business Law in California

Re: non-compete covenant

I'd say what you're proposing to do doesn't breach the portion of the clause you've quoted, because giving assistance of this sort simply isn't solicitation.

However, the inquiry doesn't end there. If the non-complete clause were to read, for example, "X shall not compete with Y in any way, cncluding opening another business within 50 miles, being a partner in a business, soliciting customers, soliciting employees ...... etc." then perhaps it can be argued that consulting for someone in starting a competing business is among the prohibited acts.

You didn't say whether her business would be competing with your former business. If it doesn't compete, I don't see a problem. If it does, you'd have to read all of the prohibitions of the non-compete clause very carefully.

Another issue is damages. In order to sue you successfully, the buyer would have to show some kind of monetary damaes. Breaching a contract is not "illegal" in the sense that you can be thrown in jail; it only means you have to compensate someone for the harm you cause, if any. Also if the contract has an attorney fee clause, you might have to pay the other side's legal fees, even if they can only prove quite small monetary harm from your breach.

Re: non-compete covenant

Possibly, but probably not. Would have to see the contract language exactly and, the entire agreement and know more.