» Business Litigation

What is a Covenant Not to Compete?

Generally, an employee signs a covenant not to compete contract along with their new hire paperwork when starting a job. This formal agreement protects the employer when the employee quits his or her job. The contract will usually stipulate that the employee is not to perform a similar job for a certain period of time after termination.

A covenant not to compete, also known as a non compete agreement, with an employer is usually enforceable. The reason for these contracts is that a business doesn't want their trade secrets, highly sensitive information, and customer lists shared with their competition. Also, if an employer trained and developed an employee, they don't want another company to reap the benefits of that trained and skilled worker.

Each state has different laws regarding covenants not to compete. These contracts need to be reasonable and not give the employer too much power or else the state courts may rule them unenforceable. To determine if you have a case, contact an Iowa business litigation attorney at Brady Preston Gronlund. Call (319) 866-9277 for a free consultation with one of our experienced Cedar Rapids business litigation lawyers today.

What is a breach of contract?

A breach of contract is when one or more people in a binding agreement fail to honor their part of the contract. If one side does not honor their promise by non-performance, a breach occurs. A contract can be breached entirely or in part. This can occur for many reasons, including:

  • One party does not fulfill the contractual promise
  • One party interferes with the others performance
  • One party is unable to perform the contractual promise
  • One party does something against the intent of the contract
  • One party refuses to fully perform the contract

To make sure your contract is enforceable, it is always wise to have the contract in writing. If the other party did not fulfill their end of the contract, you can point it out and give them the opportunity to fix it. If they still refuse, then you should seek the advice of an attorney.

Call the Iowa business litigation attorneys at Brady Preston Gronlund to see if your contract is enforceable. We will sit down with you and provide you with a free evaluation to determine if there was a breach of contract in your case. Call us today at (319) 866-9277.

What are trade secrets and why is it important to protect them?

Trade secrets are a company's confidential information. A trade secret may be a product, recipe, design, or any piece of secret information that makes one company different from another. Typically, companies invest a large amount of money in their businesses to perfect certain methods such as the manufacturing and distributing process, purchasing habits, sales methods, advertising techniques and more.

Also, trade secrets could be a company's client list or list of suppliers. If another competitive business got a hold of any of these items, it could cause a company to lose market share and dominance and allow the other company to capture some of their business.

Companies should always have their employers and vendors sign a non-compete agreement and a non-disclosure contract. If you need help learning how to protect your company's information, contact one of our experienced Iowa business litigation attorneys at the law firm of Brady Preston Gronlund today at (319) 866-9277 for a free legal evaluation.