Vendor Non Compete Agreement Template

As a professional, I understand the importance of creating content that is not only informative but also optimized for search engines. In this article, we will discuss a commonly used legal document in the business world – the vendor non-compete agreement template.

What is a Vendor Non-Compete Agreement Template?

A vendor non-compete agreement template is a legal document that aims to protect the interests of a company by restricting vendors from engaging in competitive activities during and after the term of their agreement. This agreement is usually signed between a company and a vendor providing services or products to that company.

The purpose of a vendor non-compete agreement is to prevent the vendor from using the information, knowledge, and contacts gained through the business relationship with the company to compete against the company. It is a way for the company to safeguard its intellectual property, trade secrets, and customer relationships.

Key Clauses in a Vendor Non-Compete Agreement Template

A vendor non-compete agreement template can vary depending on the industry, nature of business, and specific needs of the company. However, there are some key clauses that should be included in every vendor non-compete agreement, such as:

Scope: This clause outlines the specific products, services, or industries that are subject to the non-compete agreement.

Territory: This clause specifies the geographic area where the vendor is restricted from competing with the company.

Duration: This clause specifies the length of time for which the non-compete agreement will be in effect.

Exceptions: This clause outlines any exceptions to the non-compete agreement, such as if the vendor is providing similar services to non-competitive companies or if the vendor is competing in a different geographic area.

Enforcement: This clause outlines the consequences of violating the non-compete agreement, such as monetary penalties or legal action.

Tips for Drafting a Vendor Non-Compete Agreement Template

Drafting a vendor non-compete agreement template can be a complex process, but it is essential for protecting your business interests. Here are some tips to help you draft an effective vendor non-compete agreement:

Be specific: Make sure to include specific details regarding the scope, territory, and duration of the non-compete agreement. Vague language can lead to legal ambiguity and make it difficult to enforce the agreement.

Consider the vendor`s perspective: While the agreement is intended to protect your business interests, it’s essential to strike a balance to avoid overreaching and creating an undue burden on the vendor.

Consult with an attorney: It’s always a good idea to consult with an experienced attorney before drafting a vendor non-compete agreement to ensure that it complies with applicable laws and regulations.


A vendor non-compete agreement template is an essential tool for protecting your business interests and preventing vendors from engaging in competitive activities that could harm your business. Remember to be specific, consider the vendor’s perspective, and consult with an attorney to ensure that your agreement is effective and legally enforceable.

Comments are closed.