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Showing posts from October, 2017

Difference between Non- Solicitation and Non-Compete Clauses

With expansion of technology as well as diversification of business transaction(s), the competition has also increased and so has the consideration of terms of agreements for keeping the business interests of parties secured.

Typically, non-solicitation and non-competition (or non-compete) clauses are found in employment and staffing agreements.However they are gaining relevancy in diversified transactions. Majority of the times (but not necessarily) they are specified under one or succeeding sections.

Both terms altogether have different applicability. The difference between both lies in the scope of what they prohibit or restrict.

While a non-solicit restricts, restrains or prohibits the employee or vendor or a obligated contracting party (in a transaction) from contacting whether directly or indirectly the employer or other party’s past, present (or sometimes prospective) customers, vendors, clients or employees as is specified in the non-solicitation clause.

A non-compete on th…