Legal Question in Business Law in California

Re: assignability of non competition agreements

No, non-competition agreements may not be assigned. Non-competition agreements are considered contrary to public policy, so the law will enforce them only in very limited circumstances.

Re: assignability of non competition agreements

If the non-competition agreement involves an employer-employee relationship, it is void. However, the Business and Professions Code (see sections 16600-16602) permits non-compete clauses in certain sale-of-business situations.

A quick check shows there are a few old cases holding that these non-compete clauses can be assigned to subsequent purchasers of the business and enforced against the original seller. Whether the specific prohibition against assignment would be enforced cannot be said with absolute certainty.

Therefore, if this is a sale-of-business matter and not an employer-employee matter, my advice is not to assume the clause can't be enforced until thoroughly researched by a competent attorney. There is a slim chance it can be enforced.

Re: assignability of non competition agreements

non competition agreements are illegal in CA