Covenant Not To Compete Legal Meaning and Definition

Here is a simplified definition of the legal term Covenant Not To Compete.

Covenant Not To Compete (noun)

A Covenant Not To Compete, also known as a non-compete clause, is a part of contract law where a person, typically in business or a profession, agrees not to compete against a specific party or within a certain location. This agreement is often used to preserve positive business relationships and discourage unfair competition, which could lead to price disruption.