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Frequently asked Questions
A Non-Compete Agreement, under the Indian Contract Act, 1872, restricts employees or partners from competing or misusing confidential data during or after association.
In-employment clauses are enforceable, but post-termination restrictions are limited by Section 27, requiring reasonableness to protect trade secrets or clients.
It safeguards IP, client relationships and market position, enhancing stability and investor trust for startups or established firms.
Scope of restriction, duration, geographic limits, IP/client protections and remedies, compliant with Indian Contract Act, 1872.
Typically 6 months to 2 years for in-employment clauses; post-termination limits must be reasonable per Section 27.
Key employees, contractors or partners with access to trade secrets or client data should sign to protect business interests.
Breaches may lead to injunctions or damages under the Indian Contract Act, 1872, based on agreement terms and harm caused.
Yes, stamp duty under the Stamp Act, 1899, varies by state to ensure legal enforceability in India.
Novam Legal crafts Section 27-compliant agreements with role-specific clauses, stamp duty adherence and execution support.
Custom agreements ensure enforceability, address business needs and reduce risks compared to generic templates.
Yes, no-poach clauses prevent ex-employees from soliciting clients, preserving revenue and competitive edge.
It deters competitive exits and protects IP, ensuring operational continuity and investor confidence in M&A or funding.
