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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 110493
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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How legally binding, when selling a business, to not only put

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How legally binding, when selling a business, to not only put in the contract that the seller cannot talk to anyone about the company, do business with, but cannot be personally associated with anyone connected with the former business. What if they end up working for the same Company in the future, or see each other at a party, or run into one another?
Submitted: 5 years ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 5 years ago.
That is known as a non-disclosure/anti-association clause and this is very common. The association clause does not mean they cannot run into each other at a party, it means they cannot have an ongoing personal relationship by which communications about the business can occur and these clauses are enforceable, but very tough to actually police.

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Customer: replied 5 years ago.
Just to be sure about answer, I am sending to the statements in contract. Seller, all actions, communications,representation, or contact with Representation of (Former business), with(Former business)business associates regarding any form of communication on behalf of (Former business), or for future personal reasons, will cease. No future contact for personal or business reasons will exists between these contacts and Sharon Yvette Pennington, Seller. Example: this would include contact Jo and Teff Barker, XXXXX XXXXX, Etc.
That is all that is said, it that all only legally binding and pertain to the business that is being sold. One individual has contacted me about being in a network marking business, I would be in same company and in his down line. We would be working together, but never have to mention former business.
Expert:  Law Educator, Esq. replied 5 years ago.
Yes, you could not have contact with these people, it would theoretically be a violation of the contract. However, if you show you have no contact with them, even if you are in their downline, then you can do this. If they catch you working with her in another business, then the chances are that they could not enforce that agreement as it is not reasonable.
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