Legal Question in Business Law in Maine
My husband signed a non-compeat contract with his delivery company. It states he cannot work for another beverage delivery company for 1 year. My husband is thinking about leaving his current job. We are looking into purchasing a beverage delivery route with another company, the contract would be in my name. My husband's name would be no where on the contract, he would just help me deliver the product. Would my husband be allowed to help me or would it be breaking the non-compeat that he signed?
1 Answer from Attorneys
Assuming that the non-compete is enforceable, then the fact that he would be an independent contractor for you and not receiving direct pay in servicing the route does not change matters- he would still be indirectly benefitting from his work for a competitor. However, I would want to carefully examine if the agreement was entered into by him for consideration, how it defines compete, how it defines the geographic area and the time period. The law generally disfavors enforcing these agreements as it does not want to prohibit a hardworking person from earning a reasonable wage and providing for their family. The last issue is damages- what would he be liable for under the agreement if he did work for another company? If there is no loss of sales or customers and therefore no damages to the current company by virtue of his new job, that would also be a factor in deciding what to do.
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