Are these agreements enforceable?

Enforceability depends on state law and reasonableness; ESIGN and UETA allow electronic signatures (15 U.S.C. §7001; UETA 1999). Substantive limits (for example, California case law and statutes) can render non-competes unenforceable.

How long can restrictions last?

Courts typically look for reasonable durations tied to business needs. Common ranges are six months to two years, but reasonableness is jurisdiction-specific and fact-dependent.

Can contractors be restricted?

Yes, but many jurisdictions treat independent contractors differently; express consideration and narrowly tailored terms improve the chance of enforcement.

Is electronic signing legally valid?

Yes—electronic signatures meet legal tests under the ESIGN Act (15 U.S.C. §7001) and UETA when intent, consent, attribution, and reliable retention are present.

Do I need a notary or witnesses?

Most states do not require notarization for non-compete agreements, but certain states or specific filings may benefit from notarization; verify state law for special circumstances.

How do I revoke or amend an agreement?

Revocation or amendment requires mutual written consent unless the contract specifies a unilateral modification process; record all changes and retain executed amendments.

Electronic Signature
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Non-Solicitation and Non-Compete Agreement

Non-Solicitation and Non-Compete Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

What a Non-Solicitation and Non-Compete Agreement Covers

A Non-Solicitation and Non-Compete Agreement is a contract between parties that limits solicitation of clients, customers, or employees and restricts competitive activities for a defined period and geographic area. Common in employment, sale-of-business, and contractor contexts, these agreements specify restricted activities, duration, geographic scope, consideration, and remedies for breach. Enforceability depends on state law and reasonableness; courts weigh legitimate business interests against public policy and an individual's right to work. Parties often include severability and choice-of-law clauses to reduce risk of total invalidation.

Why organizations include these clauses

Non-solicitation and non-compete clauses protect proprietary customer relationships, trade secrets, and investment in workforce training while providing a contractual basis for injunctive relief and damages when breaches occur. Properly drafted provisions reduce business disruption after departures or sales.

Who typically uses this agreement and when

Employers, acquirers, legal counsel, and HR professionals commonly use these agreements to protect business interests when hiring key personnel or closing transactions.

Employers hiring senior staff or sales teams who will access trade secrets or client lists.
Buyers and sellers in M&A who want post-closing protection for transferred customer relationships.
Independent contractors or consultants given client introductions or proprietary methods.

Who signs and executes these agreements

Employer — General Counsel

Corporate counsel or HR leaders negotiate scope and consideration, assess enforceability by state, and coordinate execution and record retention to support potential future enforcement.

Employee / Contractor

Individual signers should understand restricted activities, duration, and compensation; they often seek counsel to confirm reasonableness and whether state law limits enforceability.

Essential information to include

Execution Date: MM/DD/YYYY

Parties: Full legal names

Restricted Activities: Clear, specific list

Duration: Time period defined

Geographic Scope: Specific regions

Consideration: Money or benefits

Consequences of a flawed agreement

Unenforceability: Entire clause voided

Litigation Costs: High defense expenses

Injunction Risk: Court-ordered relief possible

Damages: Monetary liability

Reputational Harm: Employee relations impacted

Regulatory Scrutiny: Antitrust or labor issues

Common drafting and execution pitfalls

Overbroad geographic or activity restrictions that courts deem unreasonable and therefore unenforceable.
Failing to provide adequate consideration for post-employment restrictions, making the clause voidable.
Applying employee-only language to independent contractors without adjusting for contractor status and enforceability.
Using vague terms like 'all clients' instead of clearly defined customer lists or categories.

Step-by-step: completing and executing the agreement

Follow a consistent sequence: gather facts, draft clear restrictions, confirm consideration, obtain required signatures, and preserve records for enforcement.

01

Gather details: Collect party names, dates, and the customer list.
02

Draft scope: Define prohibited activities and carve-outs clearly.
03

Set limits: Choose reasonable duration and geography.
04

Execute: Obtain signatures and retain audit trail.

How digital completion and delivery typically proceed

Electronic workflows reduce execution time while preserving evidence of consent and signature attribution when properly configured for legal validity.

Upload document: Add final agreement file to the platform.
Place fields: Insert signature, date, and initial fields.
Authenticate signer: Use email, SMS code, or stronger methods as needed.
Sign and archive: Signers complete and signed copy is stored.

Recommended digital workflow settings

Configure workflows for traceable signatures, clear ordering, and secure retention to support enforceability and audits.

Field	Configuration
Authentication	Email + optional SMS code
Signing Order	Sequential or parallel as needed
Reminders	Automated cadence, 3 reminders
Retention	Secure storage with audit trail

Technical needs for eSigning and evidence

Use a platform that provides strong audit trails, secure storage, and configurable signer authentication to support legal validity.

Integrations: CRM and HR systems supported
File formats: PDF, DOCX supported
Auth options: Email, SMS, KBA, SSO

Timing considerations and typical deadlines

Set internal milestones for review, signature, and post-signature retention. Reasonableness of time limits is key when courts assess enforceability.

Signature Window:

Complete signing within 30 days of execution to avoid stale signatures

Review Period:

Allow 5–10 business days for legal review before signing

Renewal Notice:

Specify any renewal or re-negotiation window

Enforcement Documentation:

Preserve evidence immediately after suspected breach

Limitations Caution:

State statutes or case law may restrict duration

Key stages from negotiation to potential enforcement

Track the agreement lifecycle from negotiation through signature, monitoring, notice, and enforcement to maintain readiness for disputes.

01

Negotiation

Draft terms and define legitimate business interests.

02

Execution

Sign and store the fully executed agreement securely.

03

Monitoring

Monitor post-termination activity for potential breaches.

04

Enforcement

Provide notice and consider injunctive relief if warranted.

How signNow compares on price and fundamental features

Comparison of starting price and core capabilities for common eSignature vendors. signNow is listed first as the reference platform.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Yes	Yes	Yes	Yes
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Practical examples of digital execution for restrictive agreements

Organizations use electronic signatures to speed execution, maintain compliance evidence, and centralize records for potential enforcement.

Tech Data (internal workflow)

Tech Data streamlined contract workflows to secure signatures quickly

Bulk send and integrations reduced manual tasks
Bob Dutkowsky said airSlate SignNow helped improve internal and external customer service while increasing speed to revenue.

Martin Properties (real estate)

A regional broker executed confidentiality and non-solicit clauses remotely

Mobile signing allowed field agents to finalize agreements on-site
Tim Martin noted he can process and execute documents online with compliance and security, accelerating closings.

Practical drafting and execution tips

Adopt clear language, limited scope, and consistent procedures to improve enforceability and reduce dispute risk.

Tailor scope precisely

Limit restrictions to specific roles, customers, or confidential information directly tied to legitimate business interests.

Provide consideration

Ensure the employee or contractor receives explicit consideration for post-employment limits.

Prefer narrow geography

Choose the smallest area necessary to protect the business; avoid nationwide bans when not justified.

Preserve evidence

Keep executed PDFs, timestamps, IP logs, and audit trails in secure storage for potential enforcement.

Frequently asked questions and practical answers

Answers to common legal and practical questions about drafting, signing, and enforcing non-solicitation and non-compete agreements.

Need help? Contact support

Are these agreements enforceable?
Enforceability depends on state law and reasonableness; ESIGN and UETA allow electronic signatures (15 U.S.C. §7001; UETA 1999). Substantive limits (for example, California case law and statutes) can render non-competes unenforceable.
How long can restrictions last?
Courts typically look for reasonable durations tied to business needs. Common ranges are six months to two years, but reasonableness is jurisdiction-specific and fact-dependent.
Can contractors be restricted?
Yes, but many jurisdictions treat independent contractors differently; express consideration and narrowly tailored terms improve the chance of enforcement.
Is electronic signing legally valid?
Yes—electronic signatures meet legal tests under the ESIGN Act (15 U.S.C. §7001) and UETA when intent, consent, attribution, and reliable retention are present.
Do I need a notary or witnesses?
Most states do not require notarization for non-compete agreements, but certain states or specific filings may benefit from notarization; verify state law for special circumstances.
How do I revoke or amend an agreement?
Revocation or amendment requires mutual written consent unless the contract specifies a unilateral modification process; record all changes and retain executed amendments.

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