Legal Question in Business Law in New York
Non-competition agreement
I signed a contract approx one month ago, which had a non-competition clause (1 year). They have not yet placed me into a position. They have submitted my resume to one employer, but they are now unable to fulfill the terms of the contract -- the salary they originally agreed to (which is also stated in the contract). Again, I have not yet worked an assignment for this contracting company.
My Questions:
1)Is this contract binding?
2)Can I get out of this contract?
3)Will I be able to go through another contracting company for the same assignment?
4)Since they are not able to uphold their end of the bargain (orgianal salary offer), does that void/breach the contract?
Thanks for your help?
3 Answers from Attorneys
Re: Non-competition agreement
As a general matter, non-competition agreements are frowned upon by the courts and will only be enforced to the extent they are reasonable. Reasonableness will be measured by the circumstances and context in which enforcement is sought (i.e., duration, geographic scope, uniqueness of the employee's services, scope of the restriction, etc.) A careful review of your contract is imperative. You should consult with an attorney.
Re: Non-competition agreement
To answer your questions with any degree of certainty the contract needs to be carefully reviewed, but it would seem that failure tohold up their end (i.e. salary) would be a material breach of the contract, and could be understood to free you from any further obligations.
Should you like to discuss this or any other legal matter, you can call my office to schedule an appointment for a consultation or in the alternative, I can be reached for on-phone low-cost legal consultation at 1-800-275-5336 x0233699.
Re: Non-competition agreement
Although the courts do not favor such agreements, they do enforce them. Much depends upon the obligations placed in the contract upon the other party. It may be necessary for you to declare a breach of the contract in exactly the method prescribed by the contract. This, of course, is one of the reasons to have a contract reviewed before you sign it - making sure that you can escape the terms of the contract if the other side does not perform. A review of your contract will be necessary to properly answer your question. We are available for such a review. You may also wish to visit our web site and read about "business contracts" on the right hand side listing.
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