Legal Question in Business Law in New York

Re: Contracts

I received your post on 2-13-2001.

Well...anything can be made into a contract. The difficulty is, what remedy is there if it is breached, how is the contract enforced, what consideration is there for such an agreement. This does not seem like one of those do-it-yourself type activities....it ap[pears to require legal assistance. Be guided accordingly.

Good Luck

RRG

Re: Contracts

The effect of your proposed contract is to restrain trade insofar as the labor market is concerned. The question as to the legality of the contract you propose turns on whether it violates "public policy." For example, courts are reluctant to enforce contracts that restrain an employee's ability to work for a competitor (known as a "non-compete clause") where the clause is too broadly worded, as is the case where there is no time limit for the non-compete or no geographical limit.

Nevertheless, from my experience and based upon the exact (narrowly tailored) language used, a contract such as the one you postulate -- restraining a competitor from hiring your employees -- should be enforceable. Of course, you would need to ensure that the competitor is given consideration for giving up the right to hire your employees, otherwise the "contract" would contain no enforceable promises. Also, you might want to have a liquidated damages clause and/or the ability to have an injunctive remedy built into the contract.

Good luck.

Please note that this response is to a general question of law and is not intended to constitute legal advice with respect to any particular legal issue. No attorney-client relationship has been formed as a result of this communication.