Document background
The Vendor Non-Compete Agreement is a crucial business document used in the Philippines when companies need to protect their legitimate business interests from competition by their vendors. This document becomes particularly important in situations where vendors gain access to sensitive business information, trade secrets, or strategic knowledge during their business relationship with the principal company. Governed by Philippine law, including the Civil Code and Competition Act, the agreement must strike a balance between protecting business interests and maintaining reasonable restrictions on trade. It typically includes specific provisions about restricted activities, geographic limitations, duration of restrictions, and consideration provided to the vendor, all while ensuring compliance with Philippine legal requirements for enforceability. This type of agreement is commonly used in vendor relationships where there's significant risk of competitive harm, such as in manufacturing, technology, or professional services sectors.
