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NGeneralUpdated 2 Nov 2026

Non-competition agreement

Contractual restriction preventing competition with a former employer or business partner.

Definition

Non-competition agreement is the contractual restriction preventing competition with a former employer or business partner. Founders reach for it when a vague conversation needs a shared, specific meaning. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.

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In the room

How the word shows up in a real conversation.

In a Monday review, someone writes Non-competition agreement on the board and restates it: “Contractual restriction preventing competition with a former employer or business partner.” The next move is a test, a cut, or a double-down — not another debate about the word.

Common mistake

Using Non-competition agreement as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.

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