An agreement of this nature is a legally binding contract that restricts an individual or entity from soliciting employees, customers, or other business contacts of another company or organization. For example, a former employee might agree not to contact their previous employer’s clients for a specified period after leaving the company to encourage them to switch their business.
These agreements are important tools for protecting business relationships and proprietary information. They contribute to fair competition and prevent unfair advantages gained through misappropriation of valuable connections. Historically, such agreements arose to safeguard investments made in building customer bases and training personnel, ensuring a return on those investments.
