Starting a Business

Can a non-compete clause be enforced if the business closed down?

min read
Opinions expressed by Entrepreneur contributors are their own.
Generally, if a business has closed its doors, there's no one to enforce the provision...so you're free to move forward with your activities. However, if the non-compete agreement made the terms binding on "successors and assigns" -- and your query does mention "current owners" -- this means that the terms CAN be enforced. Because non-compete agreements are usually interpreted according to state law, and the precise wording of the clause is key, you would be wise to speak to an employment attorney in your area who can review the actual document and give you clearer guidance.

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