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Enforceability of Texas Non Compete Agreements: “Ancillary” Requirement

October 6, 2006 / By Robert Wood
Articles // Restrictive Covenants

Once an otherwise enforceable agreement has been found to exist, the next question is whether the non-compete provision is "ancillary" to that otherwise enforceable agreement. Texas courts have made it clear that the following must be true for a covenant not to compete to be ancillary to an otherwise enforceable agreement:   •The consideration given…

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Texas Non-Compete Agreements: Otherwise Enforceable Agreement

October 5, 2006 / By Robert Wood
Articles // Restrictive Covenants

Non-competition covenants are typically contained in written (employment) agreements that contain many other provisions. The first step in determining whether an enforceable non-compete agreement exists is to mentally draw a line through the non-compete provision and examine the remaining provisions. The pertinent question with respect to the remaining provisions is: Have both the employer and…

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Labor Laws Texas. Texas Non Compete Agreements: Other Common Provisions

October 3, 2006 / By Robert Wood
Articles // Restrictive Covenants

Texas non-compete agreements often contain various other provisions, including the following:   Choice of Law.  Non-compete agreements typically will specify which state’s law will decide whether, and the extent to which, a non-compete agreement is enforceable. Even in cases in which the parties have agreed that the law of a state other than Texas will…

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