A non-compete clause restricts one party to a contract from engaging in defined competitive activity - working with competitors, developing competing products, soliciting customers - during and after the contract term.
Typical scope and enforceability
Scope is usually defined by geography, activity, and duration. Enforceability varies significantly by jurisdiction - some are strict (Delaware, most European countries), others limit non-competes (California, increasingly the UK).
The tracking dimension
Non-competes tend to appear in supplier, distributor, and employment agreements. Portfolio-level visibility into where non-competes exist helps legal and commercial teams manage the constraints they create.
