Non Compete Agreement

It is very unlikely that such a clause is enforceable.  First off, the Choice of Law Question: The proper choice-of-law approach, is for court first to determine either: (1) whether state chosen under contract has substantial relationship to parties or their transaction, or (2) whether there is any other reasonable basis for parties' choice of law. If neither test is met, that is end of inquiry, and court need not enforce parties' choice of law. If, however, either test is met, court must next determine whether chosen state's law is contrary to fundamental policy of California. If there is no conflict, court shall enforce parties' choice of law. If, however, there is conflict with California law, court must determine whether California has materially greater interest than chosen state in determination of particular issue. If California has materially greater interest, choice of law shall not be enforced, for obvious reason that in such circumstances the court will decline to enforce law contrary to California's fundamental policy. Second, the Non Compete Clause: Business and Professions Code section 16600 provides that every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void. The exceptions are permit broad covenants not to compete in two narrow situations: where a person sells the goodwill of a business, and where a partner agrees not to compete in anticipation of dissolution of a partnership. The latter sections reinforce the conclusion that covenants not to compete in contracts other than for sale of goodwill or dissolution of partnership are void. I hope this helps. Mitch Abdallah