North Dakota Century Code Title 9. Contracts and Obligations § 9-08-06. In restraint of business void--Exceptions

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A contract by which anyone is restrained from exercising a lawful profession, trade, or business of any kind is to that extent void, except:

1. A person that sells the goodwill of a business and the person's partners, members, or shareholders may agree with the buyer to refrain from carrying on a similar business within a reasonable geographic area and for a reasonable length of time, if the buyer or any person deriving title to the goodwill from the buyer carries on a like business in that area.

2. Partners, members, or shareholders, upon or in anticipation of a dissolution of a partnership, limited liability company, or corporation;  upon or in anticipation of a dissociation of a partner or member;  or as part of an agreement addressing the dissociation or sale of a partner, member, or shareholder's ownership interest, may agree that all or any number of them will not carry on a similar business within a reasonable geographic area where the partnership, limited liability company, or corporation business has been transacted, or within a specified part of the area.

Cite this article: FindLaw.com - North Dakota Century Code Title 9. Contracts and Obligations § 9-08-06. In restraint of business void--Exceptions - last updated January 01, 2020 | https://codes.findlaw.com/nd/title-9-contracts-and-obligations/nd-cent-code-sect-9-08-06.html


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