Some businesses use non-competition or non-solicitation agreements as a way to limit the adverse impact when sales personnel or employees with knowledge of confidential or proprietary information depart for a competitor or depart and compete.
Often, however, little thought is given to the terms of the agreement. Instead, a standard form is used, or facts and circumstances specific to the involved business are not considered. Years later, when the business seeks to enforce the agreement, they learn that the contract is not as enforceable as hoped. What follows is a short primer on some of the ways in which businesses in Minnesota can draft restrictive covenants so as to make it more likely they can and will be enforced.