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Rajah Lehal

Engaging in 'Other Business' without Violating a Non-Compete Clause

July 26, 2015

Links from this article: Read the article here.

Are you a consultant with a full time client and a related sideline where you enjoy trying out new and innovative ideas? If so, a good pitch to your client on how your sideline could benefit them may alleviate concerns about competition, and enhance the client’s regard for your skills as a consultant. It may even result in the client agreeing to flexible schedules and some financial participation in your innovative projects.

Many companies don’t specifically reference ‘moonlighting’ but prohibit the use of company resources, technology and intellectual property for noncompany activities. If the consulting agreement contains a non-compete clause, it can still be possible to provide that the consultant “may be engaged in any other activity which does not place the consultant in a conflict of interest with the company.”

Read the article here.Take away:

  • If the consulting agreement contains a non-compete clause, consider adding a clause which permits the consultant to engage in other business which is not in conflict of interest with the company.
Consulting Agreement
Commercial Activities

Written by Rajah. Rajah Lehal is Founder and CEO of Clausehound.com. Rajah is a legal technologist and technology lawyer who is, together with the Clausehound team, capturing and sharing lawyer expertise, building deal negotiation libraries, teaching negotiation in classrooms, and automating negotiation with software.