By Yasmine EDDAM
15 June 2025
The non-competition clause is a powerful contractual instrument, frequently used in business life, whether at the time of the transfer of a business, in a shareholders' agreement or in a distribution contract. Its purpose is to protect creditors against competition from debtors. However, this protection comes into direct conflict with freedom of enterprise and freedom of employment. This is why its validity is governed by strict conditions defined by case law. A poorly drafted or excessive clause is likely to be purely and simply annulled by a judge, leaving its beneficiary unprotected. This article details the essential criteria that determine the legality of such a commitment, in addition to our complete guide to the non-competition obligation. Consent to the non-competition obligation: reality and integrity Like any contractual undertaking, the non-competition obligation is based on the will of the parties. The existence and...
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