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