Delaware Clauses Relating to Venture Opportunities, competition
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FAQ
Under Delaware law, a restrictive covenant, such as a non-compete, generally is enforceable if it: (1) meets general contract law requirements; (2) is reasonable in scope and duration; (3) advances a legitimate economic interest of the party enforcing the covenant; and (4) survives a balance of the equities.
Under Delaware law, a restrictive covenant, such as a non-compete, generally is enforceable if it: (1) meets general contract law requirements; (2) is reasonable in scope and duration; (3) advances a legitimate economic interest of the party enforcing the covenant; and (4) survives a balance of the equities.
The difference in a forfeiture-for-competition provision being that an employee can choose to leave their employment and compete (without fear of a suit for damages or injunctive relief), as long as they are prepared to forgo the payments that are conditioned upon the employee not competing.
Each party consents to the exclusive jurisdiction of such court in any such civil action or legal proceeding and waives any objection to the laying of venue of any such civil action or legal proceeding in such court and/or the right to bring an action or proceeding in any other court.
compete agreement, often part of a broader employment contract, is a legal document prohibiting an employee from working for or starting a competitive business during or after their employment period. Noncompete agreements are recognized and enforceable under Florida law.
Over the past six months, the Delaware Court of Chancery has issued a series of decisions narrowing the scope of permissible non-compete agreements, while declining to ?blue pencil? those provisions to render them enforceable.