Updated April 22, 2024
A Montana non-solicitation agreement is a contract that helps to protect a business’s relationships and confidential information. In Montana, a non-solicitation agreement can only apply to business relationships, not employer-employee relationships. Their ultimate purpose is to protect a business from direct competitors who may gain an unfair advantage from having access to its contacts and relationships.
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]
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What Types of Solicitation Can Be Prohibited?
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 Should Be Included in the Agreement?
A non-solicit covenant typically includes limitations on the following:
1. Duration
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 Area
The geographical area specified in the agreement is typically limited to the city or county in which the business is located.
3. Restricted Activities
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.
Related Forms
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Montana Non-Disclosure Agreement
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