QUESTION

I sold a business 2 years ago and signed a Covenant Not To Compete agreement, Do you think it can be enforced?

Asked on Oct 16th, 2011 on Business Law - Pennsylvania
More details to this question:
COVENANT NOT TO COMPETE Seller hereby binds itself to abide by all of the provisions, terms and conditions of a non-competition covenant set forth in this Section, which constitutes an integral part of this Agreement between Seller and Buyer, pursuant to which Seller, including any officer or affiliate of, or any other family member or other individual who may be related to any of the principals of Seller, shall refrain from operating or in any fashion being involved in a powder-coating business or any competitive business to how FMR Industries, Inc, as it presently operates, or any other business either identical or similar to that of FMR Industries, Inc. as it presently operates, and from serving as a principal, officer, director, employee, shareholder, agent or consultant, either by contract or otherwise, to such an entity, and shall refrain from entering into competition with the activities or operations of the business, at any location within 1,000 miles of the Premises, effective on and
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1 ANSWER

Financial Markets and Services Attorney serving Blue Bell, PA at Max L. Lieberman & Associates A Professional Corporation
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In Pennsylvania, covenants not to compete generally will be enforced if they are related to some identifiable business interest and are reasonably limited in scope and duration (geographically or otherwise). There are many factors the courts will consider such as the nature of the business, any undue hardship which may ensue from enforcing the agreement, and the parameters of the geographic area included. Although every covenant not to compete is unique as to the nature of the business, product or services, covenants typically run for a certain period of time (such as three or five years) and are limited in geographical area. In the sale of business context, the courts in Pennsylvania generally uphold a covenant not to compete, solicit or disclose as long as the restrictions in the agreement are reasonable in time, scope of business and the distance involved. On a general basis, I hope this provides some guidance. As to the specific circumstances and facts related to your inquiry, I would encourage you to consult with an attorney who can further advise you. No specific legal advice can be provided without a full review of the agreement and an understanding of the factors to be considered.
Answered on Nov 02nd, 2011 at 2:08 PM

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