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 by the employer [in...Continue Reading
Over the past decade, Attorney Robert Wood has published hundreds of articles on the Texas Contract & Noncompete Disputes Blog, establishing himself as an authority on Texas noncompete law. If you want to gain a better understanding of how non-compete and other contractual issues are handled in the Texas courts, you’re in the right place.
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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 the employee made binding...Continue Reading
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 apply, the court will...Continue Reading