The Non Compete Agreement Between Business Partners is essential when partners in Singapore wish to protect their business interests from potential competition from each other. This document becomes particularly relevant during business formations, partner exits, or when restructuring existing partnerships. It must comply with Singapore's legal requirements, including the reasonableness test under common law and the legitimate business interest test. The agreement typically includes specific provisions about restricted activities, geographic limitations, duration, and consequences of breach, while ensuring enforceability under Singapore's legal framework.
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1. Parties: Identification and details of the business partners entering into the agreement
2. Background: Context of the agreement and existing business relationship
3. Definitions: Key terms used tHRoughout the agreement including defined competitive activities, business interests, and territorial scope
4. Scope of Non-Compete: Detailed restrictions on competitive activities, including specific prohibited actions and business areas
5. Duration: Time period for which the non-compete restrictions apply, ensuring reasonableness under Singapore law
6. Geographic Scope: Territorial limitations of the restrictions, defining specific regions or markets covered
7. Consideration: Value exchanged for the non-compete obligations to ensure enforceability
8. Breach and Remedies: Consequences of violating the agreement, including available legal remedies and damage calculations
1. Confidentiality Obligations: Additional provisions for protecting confidential information and trade secrets during and after the non-compete period
2. Non-Solicitation: Additional restrictions on soliciting employees, customers, or suppliers from the business
3. Assignment Rights: Provisions regarding the ability to transfer or assign rights and obligations under the agreement
4. Severability: Provisions ensuring that if any part of the agreement is found unenforceable, the rest remains valid
1. Schedule A - List of Restricted Activities: Detailed enumeration of specific prohibited competitive activities and business sectors
2. Schedule B - Geographic Territories: Detailed mapping and description of restricted geographic areas and markets
3. Schedule C - Existing Business Interests: Documentation of current business activities, market presence, and protected interests
4. Schedule D - Consideration Details: Specific terms of compensation or value exchange for the non-compete obligations
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