Non-competition clauses are not exclusive to employment contracts; they also feature in many commercial contracts to limit a business partner’s scope of activity at the end of his or her assignment.
To be valid, such clauses must protect the legitimate interests of the beneficiary, while at the same time being sufficiently limited in time and space, without unduly restricting the freedom of exercise of the debtor of the obligation.
In practice, these clauses often prohibit us from operating in a given geographical area or with specific customers for a period of one year.
The Versailles Court of Appeal (CA Versailles, September 14, 2023, no. 21/05171) considered the case of a service provider hired for a three-month contract, renewed over two years, with a company that had assigned him to one of its customers. The Court ruled that the one-year duration of the clause was disproportionate to the initial term of the contract.
This decision highlights the danger of standard clauses, which are not, by definition, adapted to the specific situation of each contract, and which can backfire on a contractor in the event of a dispute. As each situation is unique, an effective non-competition clause needs to be tailored to each individual case.
At DESRUMAUX AVOCATS, we understand the importance of these nuances. We are at your side to draw up customized commercial and employment contracts, offering you peace of mind and adequate protection. Your business is unique, and so should your contracts.
