An Analysis of the Function of the Non-Competition Agreement in Commercial Relations

Document Type : Research Article

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Abstract

The protection of legitimate interests in commercial relations has raised endless concerns for persons and undertakings and they have always tried to employ different available tools achieving mentioned goals. The Non-competition agreement or clause is considered an efficient instrument, with special attention in its function in preventing others from competitive activities, particularly in the absence of explicit statutes.  It can protect diverse varieties of legal interests such as trade secrets and good will in various relations. This paper examines statutes, doctrines and the latest judicial judgments in different legal systems about functional aspects of the non-competition clause in commercial relations.  It also shows that, in observing the potentials and goals of the non-competition agreement, its function, in despite of dominant approaches, should not be limited to supporting certain interests and relations.

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