Non-Compete Agreement Signed in Asset Purchase

Posted by: Copenhaver, Ellet & Derrico

Recently, a Virginia-based individual was going through an asset purchase for another person’s business. Originally, this individual didn’t intend on retaining a lawyer of their own; instead, they trusted that the other party’s counsel would be sufficient. However, the client fortunately decided to cover all his bases and contacted attorney Rick Derrico.

During meetings with his client, attorney Derrico discovered that the asset purchase did not include a non-compete agreement. This meant that the seller could conceivably open a similar business with all of the buyer’s possible customers. While it was eventually revealed that the other party intended to turn almost everything over in the sale to the new business owner, they did want to retain one large contract. This point was disputed between the two parties, and attorney Derrico negotiated on his client’s behalf. After discussions between those involved, everything in the asset purchase – the large contract included – went to attorney Derrico’s clients, and a non-compete agreement was signed.

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