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Non Compete Agreement For Business Partners Template for Indonesia

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Key Requirements PROMPT example:

Non Compete Agreement For Business Partners

"I need a Non Compete Agreement For Business Partners for a technology consulting firm in Jakarta, where two founding partners are bringing in a third partner in March 2025, and we need to protect our client relationships and proprietary software development methodologies across Southeast Asia."

What is a Non Compete Agreement For Business Partners?

The Non-Compete Agreement For Business Partners is a crucial legal document used when establishing or maintaining business partnerships in Indonesia where protecting business interests, trade secrets, and competitive advantage is essential. This agreement is particularly relevant when partners share sensitive business information, proprietary knowledge, or access to key clients and markets. It must comply with Indonesian legal framework, including the Civil Code, Anti-Monopoly Law, and business partnership regulations. The document typically includes specific provisions on restricted activities, geographical limitations, duration of restrictions, and enforcement mechanisms. It's designed to protect legitimate business interests while remaining reasonable and enforceable under Indonesian law, making it essential for partnerships in competitive industries or where significant intellectual property or market share is at stake.

What sections should be included in a Non Compete Agreement For Business Partners?

1. Parties: Identification of all business partners and their legal details

2. Background: Context of the business relationship and reason for the non-compete agreement

3. Definitions: Clear definitions of key terms including Confidential Information, Competitive Business, Territory, and Restricted Period

4. Scope of Non-Compete: Detailed description of prohibited competitive activities and business areas

5. Geographic Limitations: Specific territorial boundaries where the non-compete restrictions apply

6. Duration: Time period for which the non-compete obligations remain in effect

7. Confidentiality Obligations: Provisions regarding the protection and non-disclosure of confidential information

8. Consideration: The business benefit or compensation provided in exchange for the non-compete obligations

9. Exceptions and Permitted Activities: Specific activities that are allowed despite the non-compete provisions

10. Remedies and Enforcement: Legal remedies available in case of breach, including injunctive relief

11. Governing Law and Jurisdiction: Specification of Indonesian law as governing law and choice of courts/jurisdiction

12. Termination: Circumstances under which the agreement can be terminated and the consequences

13. General Provisions: Standard clauses including severability, entire agreement, and amendments

What sections are optional to include in a Non Compete Agreement For Business Partners?

1. Non-Solicitation: Additional restrictions on soliciting employees, clients, or suppliers - include when there's significant risk of business relationship interference

2. Training and Knowledge Transfer: Provisions regarding any business knowledge or training provided - relevant when substantial proprietary knowledge is shared

3. Audit Rights: Right to audit compliance with the agreement - include for high-value or high-risk partnerships

4. Insurance Requirements: Obligations to maintain specific insurance coverage - relevant for certain regulated industries or high-risk activities

5. Alternative Dispute Resolution: Mediation or arbitration procedures - include when parties prefer alternative dispute resolution to court proceedings

6. Exit Mechanisms: Detailed procedures for partnership dissolution - important for complex business relationships

7. Survival Clauses: Specific provisions that continue after agreement termination - include when certain obligations should extend beyond the main agreement

What schedules should be included in a Non Compete Agreement For Business Partners?

1. Schedule A - Restricted Business Activities: Detailed list of specific business activities, products, or services covered by the non-compete

2. Schedule B - Territory Definition: Maps or detailed description of geographic areas where restrictions apply

3. Schedule C - Existing Business Interests: Declaration of current business interests and activities of all parties

4. Schedule D - Consideration Details: Specific details of any financial or business considerations provided

5. Appendix 1 - Confidential Information: Detailed categorization of information considered confidential under the agreement

6. Appendix 2 - Compliance Requirements: Specific procedures and requirements for ensuring compliance with the agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions



































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Relevant Industries

Technology and Software

Manufacturing

Professional Services

Healthcare

Retail and Distribution

Financial Services

Consulting

Real Estate

Energy and Resources

Telecommunications

Food and Beverage

E-commerce

Creative Industries

Relevant Teams

Legal

Corporate Development

Business Development

Executive Leadership

Compliance

Operations

Partnership Management

Strategic Planning

Risk Management

Relevant Roles

Chief Executive Officer

Managing Director

Business Development Director

Chief Operating Officer

Partnership Manager

Legal Counsel

Compliance Officer

Business Owner

Joint Venture Manager

Strategic Alliance Director

Operations Director

Corporate Development Manager

Regional Director

Country Manager

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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