Q: I signed a non-compete with my employer but then he sold his company to a large corporation. Is the non-compete valid?
My old company was a small medical business and the non-compete was signed with that company. After the purchase of the old company I did not sign any further agreements.
A:
The answer, unfortunately, is that it depends. The language that is in your contract is likely controlling. If it expressly states that it is transferable then it probably is. If it does not address it, then there is an ambiguity in the contract and the water gets a bit murkier. Recent case law from other states found they are not enforceable absent language saying they are transferable. I am not aware of a case in Arizona that is on point.
The contract is not automatically revoked by operation of law because the company was sold. I can’t give a better opinion without examining the contract and if available the purchase and sale agreement involved in the transaction.
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