Before examining the reasonableness of a noncompetition agreement, courts first consider whether the agreement is ancillary, meaning connected and subordinate to another valid contract. If there is no such contract, the court will look to see if there was valid consideration to enforce such an agreement. If there is no adequate or independent consideration present, most courts will refuse to enforce such an agreement. This is to ensure that the noncompetition agreement is not an outright restraint on trade but, rather, the result of a bargained-for exchange that furthers legitimate commercial interests.
When a businessman sells his business, the purchaser may compete with him unless there is a valid restrictive covenant or covenant not to compete. The same is true when an employee leaves the employment of a company and begins soliciting customers of his former employer or competing with his employer in a similar way. When an ongoing business is sold, it is commonly stated in the sales contract that the seller shall not go into the same area or begin a similar business within a certain geographical area or for a certain period of time or both. Such an agreement can be valid and enforceable.
Restrictions to prevent competition by a former employee are held valid when they are reasonable and necessary to protect the interests of the employer. Courts will closely examine covenants not to compete signed by individuals in order to make sure that they are not unreasonable as to time or geographical area.
When a restriction of competition is invalid because it is too long or covers too great a geographical area, Courts will generally do one of two things. Some Courts will trim the restrictive covenant down to a period of time or geographical area that the Court deems reasonable. Other Courts will refuse to enforce the restrictive covenant at all and declare it void.
Caution: Statutory law in a few states completely prohibit covenants not to compete unless the covenant meets the state's statutory guidelines.
A Kansas General Non-Competition Agreement, also known as a Kansas non-compete agreement, is a legal contract between an employer and employee that restricts the employee from engaging in any competitive activities that may conflict with the employer's interests after the employment relationship ends. This agreement is designed to protect a company's trade secrets, confidential information, customer relationships, and overall business strategies. The Kansas non-compete agreement typically outlines the terms and conditions of the agreement, including the duration of the non-compete restriction, the geographic scope of the restriction, and the specific industries or types of businesses the employee is prohibited from entering. It may also include provisions related to trade secrets, non-solicitation of customers or employees, and confidentiality obligations. There are several types of Kansas General Non-Competition Agreements that may be tailored based on specific business needs and industry requirements: 1. Employer-Employee Non-Compete Agreement: This is the most common type of non-compete agreement, which is entered into between an employer and an employee at the beginning of the employment relationship. It restricts the employee from working in a similar business or taking up a competing role within a defined timeframe and geographic area following termination of employment. 2. Sale of Business Non-Compete Agreement: This agreement is executed when an individual sells their business to another party. It restricts the seller from starting a new competing business or working for a competitor for a specific period and within a designated geographical region. 3. Independent Contractor Non-Competition Agreement: This agreement is between a company and an independent contractor. It prohibits the contractor from engaging in competing business activities or working for competitors during or after the project duration. 4. Partnership Dissolution Non-Compete Agreement: This agreement is entered into when partners dissolve their business partnership. It typically restricts each partner from competing against the original partnership or starting a similar business within a specified time and geographical area. It is important to note that Kansas law imposes restrictions on the enforceability of non-compete agreements. Courts will consider factors such as reasonableness of the restrictions, whether the agreement protects legitimate business interests, and the potential harm caused to the employee's ability to earn a living. Therefore, it is advisable for employers to consult with legal professionals familiar with Kansas law to ensure the agreement is drafted appropriately and compliant with local regulations.
