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Evaluating a Contract-Contract Review
Evaluating a Contract- Contract Analysis
- Yes, the employee non-compete and nondisclosure agreement contain a governing law provision. The state whose laws apply to the contract is the state of New Hampshire. This provision is found in paragraph 17 of the agreement.
- No, according to paragraph 12 of the Agreement, neither the agreement nor any rights and benefits under it may be assigned by the employee.
- The definition of proprietary information according to paragraph1is any information relating to customer and supplier lists, licenses, financial statements, new products, forecasts, strategies, marketing plans, discoveries, computer programs, data, processes, and systems that the company has developed, created, or discovered and which have commercial value to the company and considered confidential by it.
- Yes, according to paragraph 3, the employee is required to show commitment to the company and not engage in any other employment or side business other than the company unless they have sought the company's prior consent.
- Yes, there is a restrictive covenant not to compete in the agreement and this is provided for under paragraph 9 which prohibits the employee from engaging in any competitive business during his employment and 3 years after termination of his employment with the company. Hence, this covenant applies for three years following termination.
- The party who seems to have had the stronger bargaining position under this noncompete agreement is the employer. The reason for this is that the agreement highly restricts virtually all potential actions by the employee and almost renders them the company's "property." All provisions of the contract are meant to enforce the rights of the employer and do not contain any measures to shield the employee from any abuse of his rights. There is nowhere in the contract where it is mentioned that the employer has this or that legal obligation towards the employee and hence it is highly skewed in favor of the employer.......................GET A PLAGIARISM FREE COPY