Montana Non-Solicitation Agreement

Is It Legally Enforceable in Montana?

Yes — but only between business entities. Non-solicitation agreements are not enforceable against employees.^[1]

In the sale and purchase of a business, the buyer can prohibit the seller from conducting similar business activities in the business’s primary city and county of operation and adjacent areas.^[2]

These same rules apply to partners in a business who dissolve their partnership.^[3]

Types of Solicitation to Prohibit

A non-solicitation agreement can be customized to prohibit a party from soliciting or recruiting a business’s:

Employees
Clientele
Contractors
Suppliers
Other business associates

What to Include

What should you include in a non-solicitation agreement.

A non-solicit covenant typically includes limitations on the following:

1. Time Restraint

While Montana does not have any laws governing the maximum duration allowed for restrictive covenants, a contract typically includes a reasonable start and end date that binds the signing party.

2. Geographical Restraint

The geographical area specified in the agreement is typically limited to the city or county in which the business is located.

3. Specific Action

This section outlines the exact actions that the signing party is prohibited from engaging in, such as contacting the business’s clients or poaching its employees.