noncompete clause
Word Rarity
Very rare
Frequency: Zipf frequency 1.57 in modern English
24
Scrabble Score
16
Letters
4
Syllables
11
Unique Chars
Meaning
noun
A provision within a business agreement or employment contract which stipulates that the contracting party must abstain from competitive practices not in the interests of an identified firm, such as starting a competing business or accepting a job with a competitor, and often extending for a period of time after the termination of the original employment or other business relationship.
Example Sentences
- "Lee is just one of a series of execs who have bolted slow-growing Microsoft in the last year for the bright lights of Google. . . . Microsoft turned to its lawyers, accusing Lee of violating his noncompete clause."
- "When Pizza Hut's owner, Tricon (now called Yum Brands), tried to revise his franchise agreement in 1999 to put in a noncompete clause stipulating that Heinecke needed permission to operate other food businesses, Heinecke, who by then already ran a number of fast-food chains, sued for breach of contract."