Opportunity is missed by most people because it is dressed in overalls and looks like work. - Thomas Edison
I have a friend that bought an Ad Specialty Business and the person he bought it from signed a Non Compete for 5 yrs. The person is still working for the new owner but they have issues. They still think they can still do things they did when they owned it. Does a Non Compete hold up if the person quits? I have heard that a Non Compete does not mean squat so he will just be out of luck if the previous owner quits and calls on all customers to try and take them with them.
The non compete holds up as outlined in the sales agreement, if it's in there than absolutely he can enforce it. He better hope it's laid out clearly however or then, yes, it's endless lawyer fees and time. We are currently in a 3yr covenant not to compete and it's laid out very clearly exactly what that means (what we cannot do) and exactly what happens if we break the non compete. If we broke the terms I believe it would be very cut and dry, we would owe our buyer X as lined out in the contract which they could very easily enforce in the appropriate court. Anyone can drag out the process of enforcement (or anything legal for that matter) but at some point it's going to wind back around to the contract. That guy sounds like a total dirtbag inkman.
Quote from: ZooCity on May 08, 2013, 01:48:24 PMThe non compete holds up as outlined in the sales agreement, if it's in there than absolutely he can enforce it. He better hope it's laid out clearly however or then, yes, it's endless lawyer fees and time. We are currently in a 3yr covenant not to compete and it's laid out very clearly exactly what that means (what we cannot do) and exactly what happens if we break the non compete. If we broke the terms I believe it would be very cut and dry, we would owe our buyer X as lined out in the contract which they could very easily enforce in the appropriate court. Anyone can drag out the process of enforcement (or anything legal for that matter) but at some point it's going to wind back around to the contract. That guy sounds like a total dirtbag inkman. No doubt a well written non compete will hold up and I am pretty sure the Sign O Rama guys has a solid one, thats not the issue tho. Its the endless attorney fees that makes it almost impossible to enforce. We are talking small businesses, and a small business that is seriously in the red already because the guy stole the work. Funny thing is this guy has been known to do this several times already and yet he always finds a sucker to fall for his crap. When i say he goes on extended vacation I mean he goes to Florida in his Yacht and travels the carib for a year. He is filthy rich and rarely works.