More details to this question:
I sold a company in Arizona, no stock involved. A no-competition clause was included in the contract. The buyers have since sold this company to another individual, all out-of-state. Is the no-competition clause still in effect? The individuals that purchased the company say the clause is still in effect, and are going to court to sue my new company.
1 ANSWER
Of course you would have to look at the actual contracts to know whether the non-compete was still in effect, but most likely it is. You don't say (probably don't know) if the second sale was an asset sale or a stock sale, but either way the business's right to prevent your competition would have been one of the assets sold to the successor
Answered on Jul 08th, 2020 at 6:57 AM