client competitor
Definition
A client competitor is a business that operates in the same market and sells similar products or services as one of your existing clients. This term often comes up in service agreements, particularly with agencies, consultants, or law firms, where the service provider agrees not to work with businesses that directly compete against their current clients.
Example
If you run a marketing agency and sign a contract with a local gym chain, a client competitor clause might prevent you from also taking on another gym chain as a client while that contract is active.
Watch Out
Before signing any service agreement, check whether it includes a client competitor clause, because it could legally block you from working with certain businesses in your industry and limit your revenue opportunities.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.