By Yasmine EDDAM
15 June 2025
An ill-defined non-competition clause is a source of costly disputes. Its scope, i.e. who it binds and what activities it prohibits, determines its real effectiveness. It is a much more subtle concept than a simple limitation in time and space. While the full guide to the non-competition obligation explores the whole subject, this article looks specifically at the contours of this scope. Understanding precisely how far this obligation extends is essential for any manager or entrepreneur wishing to protect their business or, conversely, preserve their entrepreneurial freedom. Determining the subjects of the non-competition obligation: who is bound by it? One of the most complex aspects of the scope of a non-competition obligation is to identify all the people bound by it. While the signatory of the contract is obviously the first person concerned, the issue becomes more complicated when third parties are involved, particularly in the event of succession or transfer...
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