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Non-Compete Agreement: Definition, Example and Related Terms

What is a Non-Compete Agreement ?

This is a special promise that someone makes when they work at a company saying that they won't start a similar business or work for a competing business for a certain time after they leave.


  • A chef who works at a famous pizza place might sign this promise so that they won't open their own pizza place right away that could take customers away.
  • A scientist working on new robots at a tech company agrees not to make robots for another company even if they decide to leave their job.
  • A coach for a professional basketball team has an agreement to not coach another team in the same league for a few years if they ever leave the team.