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by Beestie 76 days ago
Non-competes are restrictions on employees by their current employer. A non-compete agreement between a seller and buyer is perfectly fine.
2 comments

Technically, restrictions on employees by their FORMER employer. In theory (if valid), they could retain power over you for a time AFTER you are no longer employed.

A similar thing is often done during dismissal: sign away your rights to sue for wrongful dismissal in return for severance. In my case, almost a year's worth of pay seemed like a reasonable severance, so I took it and didn't argue.

> A non-compete agreement between a seller and buyer is perfectly fine.

Well, it's up to market protection agencies to look at the specifics.

Not really. Individuals who can build a company are under no obligation to sell it to anyone placing unreasonable conditions on the sale. If I'm buying your company, I have a concern that you might pull of of the customers back (having started a new company) but the price I'm willing to offer you compensates you for the book of business you are selling to me. That's where non-solicitation clauses come in.

I think the operative principal here is that employees are at a disadvantage w/r to employers. Buyers and sellers are not presumed to be at any disadvantage w/r to each other.

You are not always free to sell your business in any way you want. Some times, there are restrictions or you may not be allowed to sell at all.

Anyway, that's not related to the employees contracts.