Recent Answers to Business Contracts Law Questions

Randy M.

Answered Feb 3, 2026

ContractsCounsel operates as a marketplace connecting clients with attorneys through a competitive bidding process. Here's how it works: You post your legal project on the platform with details about what you need. Attorneys review posted projects and submit bids that include their proposed fees and qualifications. You review the bids, compare attorney profiles and pricing, and select the attorney that best fits your needs and budget. You work directly with your chosen attorney to complete the project. ContractsCounsel does not charge a separate platform fee for clients. You pay only the attorney fee that you agreed to when you accepted their bid. This fee is negotiated directly between you and the attorney through the bidding process. Of course you also have the option to not accept any of the bids. The benefit of this model is that you control costs by reviewing multiple bids and selecting the attorney whose pricing and qualifications match your requirements. I hope that helps! Best regards, Randy

Charles D.

Answered Sep 12, 2025

The issue does not appear to be what provisions should be included but instead what contracts should be included. Based upon your needs as detailed above, you would start with the formation documents for the entity, then include employment agreements for the parties. The issues that you are concerned about are probably best resolved with this type of contract structure.

Charles D.

Answered Sep 12, 2025

Not sure that the non-compete is the right agreement for this scenario. You might want to consider an NCND agreement. This is a Non-Circumvent Non-Disclosure Agreement. Without knowing more about the relationship between the parties, I would look first to this type of document.

Randy M.

Answered Sep 11, 2025

As of September 2025, non-compete agreements are governed almost entirely by state law. The Federal Trade Commission’s 2024 rule banning most non-competes was vacated by a federal court, and the FTC dismissed its appeals in September 2025. That rule has no legal effect today. Employers must analyze enforceability under the laws of the state where the employee works. General Standards Courts in states that allow non-competes usually apply a four-part framework. First, the restriction must protect a legitimate business interest such as trade secrets, confidential information, customer goodwill, or recouping significant training investments. Second, the agreement must be reasonable in scope. Duration is typically upheld if it’s between six months and one year, with two years sometimes permitted for employees with access to highly sensitive information. Third, the geographic reach must reflect the employee’s actual influence. A regional sales manager might reasonably be restricted within their sales territory, but a nationwide restriction is rarely upheld unless the business operates nationally. Fourth, there must be adequate consideration. A job offer is usually sufficient for a new hire. For existing employees, most states require something more, such as a raise, bonus, equity grant, or promotion. State Variations Enforceability depends heavily on jurisdiction. California, Minnesota, Oklahoma, and North Dakota prohibit most employment-related non-competes. The District of Columbia bans non-competes for covered employees but allows them for “highly compensated” employees if salary thresholds and notice requirements are satisfied. Illinois prohibits non-competes for employees earning less than $75,000 and non-solicits for those earning less than $45,000, with both thresholds scheduled to increase every five years. Washington prohibits non-competes for employees earning below an indexed threshold, which for 2025 is $123,394.17 for employees and $308,485.43 for independent contractors. Colorado allows non-competes only for highly compensated workers tied to trade secret protection and imposes civil penalties for violations. Massachusetts requires employers to provide either garden-leave pay or other mutually agreed consideration, as well as advance notice and specific contractual language. Florida and Texas remain relatively favorable to employers. Florida’s CHOICE Act, effective July 2025, creates a presumption of enforceability for employees earning more than twice the mean annual wage in the county of employment, which currently falls between $80,000 and $100,000 depending on location. Texas continues to enforce non-competes that are “ancillary to” an otherwise enforceable agreement and reasonable in time, area, and scope. 2025 Legislative Changes Several states enacted new restrictions this year for healthcare professionals. Louisiana’s Act 273 limits physician non-competes to three years for primary care physicians and five years for others, with geographic restrictions tied to the parish of practice and two contiguous parishes. Maryland’s House Bill 1388 prohibits non-competes for healthcare providers earning $350,000 or less and limits non-competes for higher earners to one year and 10 miles. Pennsylvania’s Fair Contracting for Health Care Practitioners Act, effective January 2025, voids most non-competes longer than one year for covered practitioners but allows them in connection with the sale of a practice. Drafting Considerations To increase the chances of enforceability, tailor the agreement to the employee’s actual role and responsibilities. Define restricted activities with precision. For example, prohibit solicitation of clients the employee serviced in the past year rather than a blanket ban on working in the industry. Limit the geographic scope to the area where the company does business or where the employee had influence. Use a duration tied to the legitimate interest you’re protecting. Document the consideration provided if the agreement is signed mid-employment. Include a severability or reformation clause, but don’t assume a court will automatically rewrite an overbroad provision. Comply with procedural rules: Massachusetts requires ten business days’ notice before the start date, Washington requires disclosure before an offer is accepted, and other states have mandatory notices. For multi-state workforces, use jurisdiction-specific riders rather than one universal agreement. Alternatives and Complements Because non-competes are increasingly limited, employers should use complementary protections. Confidentiality and trade secret agreements are enforceable nationwide. Non-solicitation provisions are often easier to enforce, though some states impose income thresholds for these as well. Garden-leave provisions, where the employee is paid during the restricted period, can strengthen enforceability and may be required in certain jurisdictions. Training-repayment agreements are another tool but must be drafted carefully to avoid appearing punitive. The Final Analysis If you’re weighing whether a non-compete or a related restriction is right for your business, it’s smart to have an attorney review the agreement before relying on it. State laws differ widely, and even well-intentioned clauses can be struck down if they’re not drafted carefully. On Contracts Counsel, you can connect with an experienced employment lawyer who can draft or refine an agreement that protects your interests while complying with current legal standards.

Ralph S.

Answered Aug 19, 2025

This is a loaded question and you should really consider hiring an attorney from this website to draft or review a contract for you. We really don’t have a complete checklist of all the things you might want to include, and it depends on the particularity of your situation.. frequently a template might be missing something or it’s a vague or it’s broad and it creates a problems. However, detailed do you choose your contract to be is after the parties.. but it’s always about who is doing what to whom and how how they are getting paid and how is liability resolved

Dawn K.

Answered Aug 19, 2025

You don't say what the partnership entity structure is, so I'm going to answer this as if it was an LLC. If this is just a partnership agreement that operates as a different structure, the answer would be found in whatever the partnership agreement says, but many "partnership" entities that I see in practice are formed with an LLC structure, with the partners as "members." If you are an LLC, it is time to look at your operating agreement. If you do not have one, you'll be under the "default rules" in California. There are two potential structures- a "manager" managed LLC and a "member" managed LLC, you'll need to look at your specific operating agreement to see whether your LLC is specified as "manager" managed. If you do not have one, by default, your business is more than likely, a member managed LLC. Generally, and this is education, not legal advice, there are specific acts that require unanimous consent of all members- and this may include transfer of interests- depending on any restrictions in the Operating Agreement. I would start from the documentation you signed to create the partnership, whether it is a stand-alone partnership agreement or an LLC and if you have an LLC structure look for whether your company is under the default rules or what the Operating Agreement states regarding transfers.