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Protection & Confidentiality

Non-Compete Agreement -- Commercial

A commercial Non-Compete Agreement prevents business partners or contractors from competing directly after an engagement. Protects your business relationships and market position.

This template is a professionally drafted legal document. It does not constitute legal advice. LegalEase accepts no liability beyond the cost of the document purchased. For complex transactions, we recommend review by a qualified legal practitioner.
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Drafted to comply with Kenyan law and international common law standards.

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Who needs this document

You need a commercial non-compete if you are selling a business, entering a partnership, or structuring a franchise and need to prevent the other party from competing directly after the arrangement ends. Commercial non-competes are viewed more favourably by Kenyan courts than employment ones because both parties negotiate on equal terms.

What this document covers

Both parties' details
Restricted business activities
Geographic scope of restriction
Duration of restriction
Legitimate business interest being protected
Carve-outs for permitted activities
Consequences of breach
Governing law clause

Frequently Asked Questions

Can a commercial non-compete be enforced against a business partner in Kenya?
Yes. Commercial non-competes — agreed between businesses in the context of a partnership, acquisition, or franchise — are viewed more favourably by Kenyan courts than employment non-competes, because the parties are of equal bargaining power and the restriction is usually tied to the protection of the business being sold or the investment made.
What makes a commercial non-compete enforceable?
It must protect a genuine business interest (e.g. customer relationships, trade secrets acquired through the partnership), be limited to a reasonable geographic area and time period, and be proportionate to the commercial context. A restriction that covers the entire world indefinitely is unlikely to be enforced.
Is a commercial non-compete valid in the UK, Australia, and other common law countries?
Yes. Common law courts in these jurisdictions consistently enforce commercial non-competes that meet the reasonableness test, particularly where the restriction was agreed as part of a business sale or substantial commercial transaction.