Distribution Agreements · glossary

Non-compete

Tullavane’s promise not to deal in rival coffee machines while it is exclusive. The block exemptions clear a non-compete of five years at most, and a ban after the end only for one year, to protect know-how. Clause 23.6 leaves Tullavane free when the deal ends. Agreement, clause 3.1 · Chapter 2 · see Exclusive distribution

Explained in Chapter 2, Exclusive Distribution: the Territory and the Trade Mark, of Distribution Agreements.

How it comes up, in Chapter 2
Clause 3.1 is the non-compete: the distributor’s promise not to deal in rival goods. While the deal lasts, Tullavane may not make, buy, sell, rent or promote any coffee machine that competes with Cressby’s. Clause 3.2 protects the trade Tullavane has now. It may still service other makers’ machines and sell coffee.
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