"Non-compete agreements are automatically void as a matter of law in California, except for a small set of specific situations expressly authorized by statute. They were outlawed by the original California Civil Code in 1872."
"here are limited situations where a reasonable non-compete agreement may be valid in California.
(1)Where the owner of a business is selling the entire business, or is selling the goodwill in the business, the seller may be bound by a non-compete clause.
(2)When there is a dissolution or disassociation of a partnership.
(3)Where there is a dissolution of a limited liability company."
So #1 says "you cannot sell your business with the intention of competing in the same space after the sale". Which seems reasonable.
"Non-compete agreements are automatically void as a matter of law in California, except for a small set of specific situations expressly authorized by statute. They were outlawed by the original California Civil Code in 1872."
"here are limited situations where a reasonable non-compete agreement may be valid in California.
(1)Where the owner of a business is selling the entire business, or is selling the goodwill in the business, the seller may be bound by a non-compete clause.
(2)When there is a dissolution or disassociation of a partnership.
(3)Where there is a dissolution of a limited liability company."
So #1 says "you cannot sell your business with the intention of competing in the same space after the sale". Which seems reasonable.