Non-Compete

Also called Non-Compete Clause

A clause restricting someone, a founder, employee, or seller, from competing with the company for a period after they leave. Enforceability varies widely by jurisdiction.

Why it matters

Non-competes can protect a company but are increasingly limited or unenforceable in many places, including much of the US. Founders should know what actually holds in their jurisdiction rather than assume a signed clause binds.

For example

A departing executive's contract bars them from joining a direct competitor for a year, though how enforceable that is depends heavily on the jurisdiction.

Worth your time

Section 27 and Post-Termination Non-Compete Clauses: How Far Can Employers Go? Anirudh Associates · article Founders conflate two very different things: non-competes while employed (usually enforceable) versus after you quit (usually void under Section 27 of the Contract Act). This piece draws that line cleanly with recent Indian case law (Navigators Logistics, Neosky India 2025), so you know what your employer can actually stop you from doing once you leave to go full-time. Open anirudhassociates.com →

Related terms

Non-Solicitation Founders' Agreement IP Assignment

Go deeper

See how founders actually handle this on Co-founders, team and legal, part of the Starting Up hub.

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