How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Law Educator, Esq. Your Own Question
Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 116817
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
Type Your Business Law Question Here...
Law Educator, Esq. is online now
A new question is answered every 9 seconds

Good Morning, I sold my company to a larger firm in June of

Customer Question

Good Morning,
I sold my company to a larger firm in June of 2011. I remained with the company as the employing broker for the firm for 18 months. As part of the sales agreement I have a non-compete for three years, worth according to the sales agreement $10,000. The firm was a home-condo vacation rental business. I also owned a travel agency which only deals with hotels and commission based services. I was recently told that I was violating my non-compete by owning the travel agency (of which I have owned since 2007) which was not part of the sale of the other firm and does not perform any tasks similar to the sold firm that violate the non-compete, yet their attorney says it does because it is and was an entity "associated with the main firm". It was clearly stated at the time of sale that the travel agency was not part of the negotiations it is a different business doing different reservations and it was very difficult to obtain an IATA status.
My last day of my contract was March 31, 2013. In order to keep my employing broker status I had to transfer my license to another firm. I did not want to do that so I used a company name I opened several years ago to transfer the license to keep it Active with the division of real estate. I am not using the license, or the business name, do not have a website and am not performing any real estate transactions it was merely to keep my license status active in the case I was to go into sales which is not part of my non-compete. The attorney for the firm says this is also a violation of my non-compete as well. I also disclosed that I was moving the license to this firm to the General Manager of the company when I was preparing the paperwork and it was not mentioned then that it was an issue. At the end of the conversation with the VP of the company he informed me that this can all go away ( the 3 page letter from his attorney) if I agree to take the company back for my final payment for the sale - ( I have one more payment left on the purchase due January 1, 2014). I think they are trying to force me to take the deal or they are going to find a way to not have to pay with bogus claims that I am in breach of my non-compete. I apologize if this is confusing as I am confused..thank you so much for any help or advice you could give me -realizing you don't have these documents in hand and it is he-said she said..Tricia McIntyre
Submitted: 3 years ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 3 years ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.

In order to be enforcible in court, a non-compete agreement in Colorado must be narrowly tailored to protect only the legitimate business interests of the employer. Thus, you are stating the travel business does not compete or do the same thing the business you sold does and as such it would not be in competition. Furthermore, if you are not doing business with your broker license and it is sitting there, you have not violated the non-compete as they have to prove you are actually engaging in business with that license.

Thus, your feeling sounds correct in that they seem to be trying to get out of paying you the final payment. If your travel business does not compete in the same industry as their business it would not be a violation of the non-compete or the scope of their non-compete is overly broad, which means under CO law it would not be reasonable. Also, if you are not using the broker license, merely holding it, they have to prove you are using it against them to have a successful claim in court.

I truly aim to please you as a customer, but please keep in mind that I do not know what you already know or don't know, or with what you need help, unless you tell me. Please consider that I am answering the question or question that is posed in your posting based upon my reading of your post and sometimes misunderstandings can occur. If I did not answer the question you thought you were asking, please respond with the specific question you wanted answered.

Kindly remember the ONLY WAY experts receive any credit at all for spending time with customers is if you click on OK, GOOD or EXCELLENT SERVICE even though you have made a deposit or are a subscription customer. YOU MUST COMPLETE THE RATING FOR THE EXPERT TO RECEIVE ANY CREDIT, if not the site keeps your money on deposit.

Also remember, sometimes the law does not support what we want it to support, but that is not the fault of the person answering the question, so please be courteous.

This is NOT the practice of law nor is it legal advice to you, it is merely educational information for you to use to seek out a licensed attorney in your state to get actual legal advice from them. Please use sites such as or or to find a local attorney to get actual legal advice in all matters.

Related Business Law Questions