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Contracts • Remedies for Unexcused Non-Performance
K#152
Legal Definition
Generally, covenants not to compete are void and unenforceable in California as a matter of public policy.
Plain English Explanation
Generally speaking, any type of language that restricts someone's ability to compete with someone else is automatically void in California. This means that even if you sign something that says, "I super duper promise never to compete with you ever," as far as the courts are concerned, it's unenforceable. That being said, there are a couple specific, rarely tested exceptions to this rule. The first is when the non-compete is enforced against a partner of a company, or if the sale of a company includes such a clause. In those limited circumstances, a court will allow them to be enforced -- otherwise, for normal employees, they are void.
Visual Aids
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