A Non-Compete Agreement For Contractors is essential for businesses in New Zealand seeking to protect their legitimate interests when engaging independent contractors who may gain access to sensitive information or develop significant client relationships. This document is particularly relevant when contractors have access to trade secrets, client lists, or proprietary methodologies. It must be drafted in compliance with New Zealand law, particularly the Contract and Commercial Law Act 2017 and the principles of reasonable restraint of trade. The agreement typically includes specific restrictions on competition, geographical limitations, duration of restrictions, and provisions for consideration to ensure enforceability. Care must be taken to ensure the restrictions are reasonable and proportionate to the business interests being protected.
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1. Parties: Identification of the contracting parties - the business entity and the contractor
2. Background: Context of the agreement, nature of the contractor relationship, and reason for the non-compete provisions
3. Definitions: Key terms used throughout the agreement, including 'Confidential Information', 'Competing Business', 'Restricted Period', and 'Restricted Territory'
4. Scope of Restrictions: Detailed description of prohibited activities, including competition, solicitation of clients, and poaching of employees
5. Duration and Territory: Specific timeframe and geographic area where restrictions apply
6. Consideration: The benefit or payment provided to the contractor in exchange for the non-compete obligations
7. Acknowledgments: Contractor's confirmation of the reasonableness of restrictions and receipt of independent legal advice
8. Confidentiality Obligations: Protection of confidential information during and after the contract period
9. Breach and Remedies: Consequences of breaching the agreement and available remedies including injunctive relief
10. General Provisions: Standard clauses including governing law, severability, and entire agreement
1. Garden Leave: Provisions for paid non-compete period immediately following termination - used when immediate competition risk is high
2. Industry-Specific Restrictions: Additional restrictions specific to particular industries or professions - included when standard provisions don't adequately address industry-specific risks
3. International Operations: Additional provisions for contractors operating across multiple jurisdictions - used when business has international presence
4. Intellectual Property Rights: Specific provisions regarding IP developed during the contract - included when contractor role involves creation of IP
5. Non-Disparagement: Provisions preventing negative statements about the business - used in high-profile or sensitive contractor relationships
1. Schedule 1: Restricted Territory: Detailed map or list of geographic areas where restrictions apply
2. Schedule 2: Restricted Clients: List of specific clients or client categories covered by non-solicitation provisions
3. Schedule 3: Competing Businesses: List of specific competitors or types of competing businesses
4. Schedule 4: Consideration Details: Breakdown of any financial consideration or benefits provided
5. Appendix A: Acknowledgment Form: Form for contractor to acknowledge receiving independent legal advice
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