Non-Compete only for Employer/Employee?

Hello - I plan to purchase items from a wholesaler in CA for retail resale on a major internet auction (I am located in TX). It has been recommended that I require the wholesaler to enter into a "non competition" agreement to prevent them from deciding to do the same, should my business be highly successful. All of the related forms I have seen deal with employer/employee relations, which this is not. Is this the agreement I should request? Thank you. Cynthia

2 answers  |  asked Feb 7, 2005 6:01 PM [EST]  |  applies to Texas

Answers (2)

Margaret A. Harris
Business to Business Negotiations

Cynthia: You need a business-to-business lawyer. This web site is really not equipped to provide the kind of information you need, which is considered to be "commercial law." It sounds like a good idea, but since you are planning to invest a lot of time and energy into this business, it would make sense for you to pay a little money to consult with a lawyer who regularly represents small businesses in their commercial contracts or agreements. A small cash outlay now could save you a whole lot of grief in the future. And there's probably someone right there in Kerrville who can help you with this matter.

posted by Margaret A. Harris  |  Feb 7, 2005 7:22 PM [EST]
Trey Henderson

It is up to you whether to enter into a non-competition or confidentiality agreement. It is not typical for a wholesaler to sign such an agreement, but if they offer to sign one then let them.

posted by Trey Henderson  |  Feb 7, 2005 6:34 PM [EST]

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