Legal Question in Business Law in Texas
Signed contract with employer
My employer had me sign a contract stating that I would not start my own business which would compete with them within Two years after leaving my employment with them. They trained me, and after working for them for a year I do want to start my own business which would compete with them. Is the contract I signed binding in Texas? Could my spouse start the business in her name and let me work for her?.
3 Answers from Attorneys
Re: Signed contract with employer
Recent Texas Supreme Court cases have made non-compete agreements more enforceable. You had best spend some time with an attorney familiar with non-competes. If it's enforceable, having your wife set up the business won't get you around it.
Re: Signed contract with employer
Many of these contracts are not enforceable. Training is only one part of the contract. Better take it to a lawyer near you for analysis.
Re: Signed contract with employer
Mr. Grissom is correct; Texas does enforce non-compete agmts but only if they are properly drafted and there is a proper basis for holding the parties to the terms of the agreement. You should consult with a Texas admitted attorney before you invest in a new business. My firm focuses on start ups and particularly in Internet commerce.
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