If I sign a non-compete agreement and then the business is sold am I still under contract?
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If I sign a non-compete agreement and then the business is sold am I still under contract?
Asked on March 30, 2015 under Employment Labor Law, Kentucky
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 9 years ago | Contributor
It depends *how* the business was sold. If only the assets (e.g. the name, the goodwill, the inventory, the customer list, etc.) were sold, then you would no longer be bound, because the "new" company is not the one you signed the agreement with--the new company bought the valuables or assets of the old, but is not that company. But if the actual business structure--the corporation or the limited liability company (LLC) were sold, then you would still be bound, because the company is still the same.
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