Legal Dictionary of Pakistan

noncompetition covenant

A contractual provision - typically found in employment, partnership, or sale-of-business agreements - in which one party agrees to refrain from conducting business similar to that of the other party. ( Courts generally enforce these clauses for the duration of the original business relationship, but clauses extending beyond termination must usu. be reasonable in scope, time, and territory. - Also termed noncompete covenant; covenant not to compete; restrictive covenant; promise not to compete; contract not to compete.