If company goes out of business is non compete still valid
I have received word that my current employer may be going out of business. and I have signed a non-compete agreement. If he does go out of business I would like to continue to offer some of his services by starting my own business.
Please advise if the non compete agreement is still valid if he goes out of business.
Answers (1)
Non-Compete & Business Termination
Your questions is a common question. there is no clear answer, but each case or persons circumstances need to be evaluated. Several cases have held that non-compete agreements are company assets and are maintained by the successor to a company if there is an assignment clause.
To answer your specific question you would need to know how the company is going out of business, what your relationship to the company was and then review your particular agreement in light of the above information.
posted by David Goldman | Jan 15, 2008 12:07 PM [EST]
Your questions is a common question. there is no clear answer, but each case or persons circumstances need to be evaluated. Several cases have held that non-compete agreements are company assets and are maintained by the successor to a company if there is an assignment clause.
To answer your specific question you would need to know how the company is going out of business, what your relationship to the company was and then review your particular agreement in light of the above information.
posted by David Goldman | Jan 15, 2008 12:07 PM [EST]
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