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The Implications of Partnering with Someone Bound by a Non-Compete Agreement

This legal question related to corporation & partnership law attorneys in LynbrookNew York has been answered.


Was going into business with a partner after spending a lot of money and time buying material I found out he has a non compete with another company

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Montana LLC formation - corporation & partnership law.
7 years 1 month ago, corporation & partnership law attorneys, Montana

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The response provided below is specific to corporation & partnership law attorneys in the jurisdiction of Lynbrook. The previous inquiry was brief, complicating a thorough response.

The Implications of Partnering with Someone Bound by a Non-Compete Agreement

Upon going into business with an individual, discovering that they are bound by a non-compete agreement with another entity can present various legal challenges. The substantial investment of time and money already made complicates the situation. It's paramount to understand the legal ramifications of such situations and the potential paths forward.

Relevant Legal Provisions in Lynbrook

  • Corporation Law: This covers the incorporation, operation, and governance of business entities.
  • Partnership Law: Rules governing the creation, operation, and dissolution of business partnerships.
  • Contract Law: Deals with obligations and rights of parties to an agreement.

For more in-depth information on these provisions, one can refer to the official government website: Lynbrook Government Legal Resources.

Potential Solutions

  1. Review the Non-Compete Agreement: Before taking any action, it's essential to thoroughly review the specifics of the non-compete agreement. Such agreements must be reasonable in duration, geography, and scope to be enforceable. It might be less restrictive than initially believed.

  2. Restructuring the Partnership: If the non-compete is enforceable, consider restructuring roles within the business so that the partner's involvement doesn't violate the agreement. This might include changing their role or responsibilities.

  3. Negotiate with the Previous Employer: Open a dialogue with the company that holds the non-compete. They might be willing to release the partner from the agreement or adjust its terms.

  4. Seek Legal Advice: Before making any decisions, find the right lawyer who specializes in corporation & partnership law to guide you.

Cost Implications in Lynbrook

Service Average Cost ($)
Review of a non-compete agreement 750.25
Legal consultation on partnership restructuring 1,325.40
Negotiation with a previous employer 950.70
Full legal representation 4,500.35

In Lynbrook, it's worth noting that legal fees can vary widely based on the complexity of the case, the reputation of the law firm, and the specifics of the legal issue.

Further Clarification and Next Steps

Could you provide more details on the specifics of the non-compete, its duration, geographical restrictions, and the industries it covers? With more information, we can offer better-tailored advice. Remember, it's crucial to act with care and to ask a free legal question when in doubt.

Relevant Questions to Consider

  • How long is the duration of the non-compete agreement?
  • Are there specific geographical restrictions stated in the agreement?
  • Does the agreement clearly define the industries or activities that are restricted?

Frequently Asked Questions

What is a non-compete agreement?

A non-compete agreement is a contract wherein one party agrees not to start a profession or business that would compete with another party.

How can I determine if a non-compete is enforceable?

The enforceability of a non-compete often hinges on its reasonableness in terms of duration, geographical range, and scope. It's best to consult with a legal expert.

Can a non-compete stop me from starting my own business?

It depends on the specifics of the agreement. If your business directly competes with your former employer in a restricted area or during the restricted period, it might.

Are there penalties for breaching a non-compete?

Yes, the company holding the non-compete might sue for damages, seek an injunction to stop your activities, or both.

How can I get out of a non-compete?

It's possible to negotiate a release or modification of the agreement with the other party. If that's not feasible, legal routes can be explored with the help of an attorney.


This content is for informational purposes only and does not establish an attorney-client relationship. It's always recommended to consult with a local attorney about your specific situation.

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