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 2 parties      Scope of the agreement        Penalty        Restricted activities

What is a Non-compete agreement between businesses?

A non-compete agreement between businesses, also known as a business-to-business (B2B) non-compete agreement, is a legal contract in which one business (the “restricting party”) agrees not to engage in certain competitive activities that could potentially harm another business (the “protected party”). These agreements are commonly used in various industries to protect sensitive information, trade secrets, and competitive advantages.


  • Consider Jurisdictional Differences: Be aware of the legal requirements and standards regarding non-compete agreements in different jurisdictions. Laws and regulations governing non-competes can vary significantly from one location to another.
  • Consider the Business Context: Tailor the agreement to the specific industry, business model, and competitive landscape of the parties involved. What may be considered reasonable in one industry might not be appropriate in another.