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Miami Business Attorney > Blog > Business Financial Dispute > What Is A Non-Compete Agreement – And What Happens When It Is Violated?

What Is A Non-Compete Agreement – And What Happens When It Is Violated?


A non-compete agreement is a relatively common type of contract in the business world. In simple terms, it ensures that a potential competitor will not attempt to outdo, undercut, or outcompete another business. This type of agreement may arise under a variety of circumstances, and they are particularly common after one business acquires another. But what exactly is a non-compete agreement? How do they work? And what should you do if your non-compete agreement has been violated?

The answer to the latter question is simple: Get in touch with a qualified, experienced business litigation attorney as soon as possible. These legal professionals can assess your situation during a consultation. From there, they will provide targeted legal advice based on your unique circumstances, guiding you towards a positive resolution with confidence and efficiency. It’s best to book your consultation as soon as possible for best results.

What is a Non-Compete Agreement? 

Non-compete agreements may exist in several forms:

  • For Employees: When employees sign non-compete agreements, they agree not to enter into competition with their employer after their employment finishes. For example, an employee might have access to a company’s trade secrets, special formulas, and proprietary information during their employment. The fear is that the employee would spend a few years learning these secrets before quitting, creating their own company, and putting their former employer out of business. A non-compete agreement helps prevent this eventuality.
  • For Acquisitions: A non-compete agreement may also be part of a general purchase agreement. An owner might be willing to sell you their business, but the problem is that they may still have all the trade secrets, special formulas, and proprietary information in their minds after the sale is complete. The fear is simple: There’s nothing stopping the owner from selling the business, raking in a few million, and then turning around and opening an almost identical business – making the original business worthless. A non-compete agreement helps prevent this eventuality.

What Happens When a Non-Compete Agreement is Violated? 

When a non-compete agreement is violated, the aggrieved party is fully within their rights to take legal action. As long as there were no issues with the original contract, the party that violated the agreement will be held liable for any losses that may have occurred. You’ll need the help of a qualified, experienced business litigation attorney if you want to hold these violators accountable and recover a settlement. If the at-fault party is merely threatening to compete or in the early stages of setting up a competing business, a stern letter from your attorney may be enough to dissuade them from this action.

Enlist the Help of a Qualified Attorney Today

 If you’ve been searching for a Miami business & financial dispute attorney, look no further than Alhalel Law. Over the years, we have helped numerous organizations with a variety of contract disputes, including those involving non-compete agreements. We know that these violations can lead to all kinds of financial losses, and we’re ready to help you fight for your company’s well-being. Book your consultation today to get started.




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