Covenant Not To Compete Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Covenant Not To Compete, written in plain English, along with examples of how it is used.

What is Covenant Not To Compete?

It is a clause in a contract law accordig to which a trader or a person engaged in any kind of profession agrees not to get into competition agaist a paticular party or a specific geographical area.This helps in maintaining good working relation and avoiding unhealthy competition which affects the prices of goods.