Non-Compete Clause for a Subcontractor
My small business (Company A) is subcontracting for a larger company (Company B) and signed an agreement not do business with any third parties (Company C) that the larger company is doing business with for X months. My question is, can I subcontract with another company (Company D) that does business with Company C?
Re: Non-Compete Clause for a Subcontractor
Possibly. It's always your best bet to take a non-compete to a contract attorney in your area/state (which you didn't give us) for review & advice.
Re: Non-Compete Clause for a Subcontractor
That non-compete agreement is possibly an illegal restriction of trade.
What if they don't continue to do business with you and you are also frozen out of doing business with anyone else?
How do you know who is doing business with the company? Are they going to give you a list? Can you see the list in advance of signing?
You might well be signing yourself into a disaster.
Please consult a good business and contract attorney. Also do research and see how this restriction of trade agreement has worked out for others that have signed it.
Re: Non-Compete Clause for a Subcontractor
In re: city and state, the problem is that this is international law (I'm in the US, but companies B and C are in another country). Thanks for your insight though!
Re: Non-Compete Clause for a Subcontractor
There are probably choice of law and choice of venue clauses in the contract you signed, indicating what nation's laws are to apply to any dispute and where any dispute is to be litigated. Check and see, then get back to us with the information.
Re: Non-Compete Clause for a Subcontractor
No choice of law. Does that mean if they don't like what I'm doing they can bring suit in their country?