What is Sufficient Consideration for a Non Compete?
Any contract must be supported by consideration- meaning you get something in return for your agreement. For most contracts, courts will not look too closely at the value of what was exchanged.
When it comes to non competition agreements, however, you do have to receive something sufficient to justify your agreement not to compete after your employment ends.
Before the new Massachusetts Non Compete Act, it was understood that getting a new job was sufficient to support the agreement, but simply offering continued employment often was not. Under the new law, if you are asked to sign an agreement after you have already started working, you must be given something of "fair and reasonable" value to make the agreement enforceable.
Learn more here about consideration for non-compete agreements in Massachusetts.
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