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9 Ways Businesses Can Ensure Their Non-Compete Agreements Are Enforceable

A non-compete agreement is an effective way for a business to protect its intellectual property, client information, and other confidential information. It generally restricts an employee’s ability to work for a competitor or to start a competing business following that employee’s departure from his or her former employer. For a non-compete agreement to be effective and serve its purpose, however, it must be enforceable. These agreements are generally governed by state law. In New Hampshire, the law that applies to non-compete agreements has evolved over time. Certain types of employer-friendly agreements (and the restrictions they contain) used to be enforceable in New Hampshire. But over the past 10-15 years, the law has trended in the other direction and become more employee-friendly. This does not mean, however, that businesses cannot continue to protect their interests. They can certainly do so. They just have to ensure that they take certain steps to craft a non-compete agreement that adheres to recent trends. Below, I identify and explain 9 ways businesses can ensure their non-compete agreements are enforceable. 9 Ways Businesses Can Ensure Their Non-Compete Agreements Are Enforceable 1) The Non-Compete Agreement Should Generally Restrict the Employee From Soliciting Current Clients, Not Prospective Clients New Hampshire courts generally disfavor non-compete agreements because they restrain free trade and markets. However, they will enforce these agreements if they protect a “recognized legitimate employer interest.” Courts have found that a legitimate interest that businesses may protect is their current client base. This makes sense because businesses should be able to prevent employees from taking advantage of the goodwill and relationships they develop with customers and clients....

How to Determine What is a Breach of Contract

One of the more common forms of business disputes is a dispute over the failure to perform certain obligations set forth in a contract, and many businesses and individuals often wonder what is or what constitutes a “breach of contract.” If you entered into a contract, performed your obligations under that contract, and you are experiencing issues with getting the other party to perform its own obligations, you may have a situation where that party has not fulfilled its end of the bargain. What do you do next? This is a question that haunts many businesses and individuals. How do you know what is a breach of contract? Are there any specific steps that need to be taken to make that determination? Should you go back and read the actual contract? How long do you have to do this? Should you talk to an attorney? In this article, I will try and provide a simple step-by-step process that will help you understand what is a breach of contract, and that will help you determine when you have one yourself and what you can do about it. What is a Breach of Contract?   1) Determine if you have a contract This initial step might appear unnecessary, but it is a consideration worth addressing. A claim for breach of contract requires proof of four elements: The existence of a contract; Breach of the contract; You suffered damages; and The breach caused you the damages you claim you suffered. Thus, before doing anything, you should first determine if a contract exists at all. Contracts can be written or oral. But for...