Loading ...Dear Gritty VA:
I have a new client who wants me to sign a non-compete agreement. Do you know where I can find one that will work? –SC
HALT!!! Sweetie, don’t do another thing until you read this post!
You NEVER, ever want to sign a non-compete agreement. You are a business owner and you are in business to work with more than one client. Signing a non-compete agreement, especially those poorly written generic ones you can buy at the local office supply store, could effectively and potentially put you out of business.
You ALWAYS want to consult with an attorney in legal matters like this before you ever sign anything like that (which I personally would recommend you never do; it has no place between two independent business operators), and especially in cases where you don’t realize the legal ramifications and rights you may be signing away.
Now, your client may be talking about some kind of confidentiality/non-disclosure agreement (just using the wrong terminology), something to protect his or her proprietary business information and intellectual property that you may have access and become privy to while working together.
However, it is not your role to provide legal documents of that nature to clients. That is something every business owner must do themselves, consulting with their own attorneys. When they want to protect something in their business, they provide the documents to you. And vice versa.
This is an area of business law you need to bone up on if you are going to be a smart, responsible, knowledgeable business owner. And it’s an example of an area you may often need to educate clients in as well (when they ask you to do things that just aren’t your responsibility to do).
Hope that helps 
4 Comments
thanks or the info…I didn’t know this. All of your information if very helpfull. Things are starting to look up for me. I hope to become a member of the VA Chamber of Commerce very soon. I look forward to becoming a part of your team.
Dear Gritty VA: Based on this article you do feel that it is okay to sign a NDA (Non Disclosure Agreement), just not a Non-Compete. Is this correct? I have a client who wants me to sign a NDA and it seems reasonable to me, but I would love to hear what you have to say about it.
Oh, absolutely. It’s acceptable and common to be asked to sign an NDA by a client. When you are working in the belly of their business and may become privy to trade secrets and such, it’s perfectly natural for them to want to protect their interests. It’s also perfectly acceptable for you to have clients sign your own NDA if you decide you have proprietary systems or any other intellectual property you don’t want them sharing or appropriating for themselves. But as usual, it’s always, always recommended that you have your attorney look over anything first before signing. You want to be sure you aren’t agreeing to something or signing away any rights or remedies you don’t intend. It’s a pain, but contracts can be tricky and it’s better safe now than sorry later.
Thanks so much for commenting back so quickly. It is very helpful to have someone like you and your company out there supporting the VAs!