Legal English Challenge 2024 – Day 11

Read the short text about non-competition and non-solicit clauses, then select the correct option from the list to complete (1) ….. to (10) ….. .

Non-competition and non-solicitation clauses are both ___1___ covenants commonly used in contracts to ___2___ the interests of businesses and employers. However, they serve different purposes and restrict different activities.

Non-competition clauses, (also known as non-compete clauses, covenants not to compete, or restraint of trade clauses) are contractual provisions in agreements that restrict one party (usually an ___3___ or a business partner) from engaging in competitive activities that may harm the interests of the other party (usually the ___4___ or a business partner). They clearly define the ___5___ of the non-competition restriction, such as the geographic area, duration of the restriction, and the specific activities or industries that are prohibited.

 Non-solicitation clauses, or non-solicit clauses, are contractual provisions that restrict one party from actively ___6___ or enticing certain individuals or entities away from another party. These clauses are commonly used in ___7___ contracts, business agreements, or contracts involving the provision of services. Non-solicitation clauses typically focus on the solicitation of employees, customers, ___8___, or business partners, preventing the solicitation of them. Common durations of the restrictions ___9___ from several months to a few years, and the appropriate period often depends on the industry and the nature of the relationships being protected.

Both the non-competition and the non-solicitation clauses provide ___10___ consideration or compensation  to the party agreeing to the restrictions,  for example in the form of employment, access to proprietary information, additional compensation, or other benefits. These clauses are subject to legal scrutiny, and their enforceability can vary based on jurisdiction, and industry practices.

Now, press the START button to select the correct option from the list to complete (1) ….. to (10) ….. .