Arkansas Covenant Not to Sue
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FAQ
Act 921 embraces the ?blue pencil? rule, which allows for courts to reform an otherwise unreasonable or overbroad non-compete provision. This is a significant departure from prior Arkansas law. Previously, an overly-broad non-compete provision would have rendered the entire non-compete agreement unenforceable.
Also known as blue-penciling, blue pencil, or blue-pencil. In the US, blue penciling commonly refers to the practice of modifying, narrowing, or deleting an unenforceable contract or contractual provision so that the remainder of the agreement is enforceable.
The doctrine of blue pencil relates to striking out the illegal and/or unenforceable and/or unnecessary portion of a contract and retaining the rest of the contract and allowing it to be enforceable and legal.
Texas is a "blue pencil" state. That means that an overbroad non-compete (for example: one that lasts for 10 years, or that has no geographic restrictions) is still enforced. Instead of throwing the non-compete out, the court will simply impose a less restrictive term in place of the overbroad term.
In contract law, a non-compete clause (often NCC), restrictive covenant, or covenant not to compete (CNC), is a clause under which one party (usually an employee) agrees not to enter into or start a similar profession or trade in competition against another party (usually the employer).
A covenant not to compete, also called a "noncompete agreement" or "non-compete clause" - is an agreement where one party promises not to engage in conduct that would increase competition for the other party for a specific period of time.
Covenant not to compete agreements. (a) A covenant not to compete agreement is enforceable if the agreement is ancillary to an employment relationship or part of an otherwise enforceable employment agreement or contract to the extent that: (1) The employer has a protectable business interest; and.
While similar to the blue pencil doctrine (which is frequently used as a catch-all term to apply to any modification of a restrictive covenant), the purple pencil doctrine differs in that it allows rewriting non-compete agreements to make them enforceable while the blue pencil doctrine, when using the term in its ...
