competing business
Definition
A competing business is any company that sells similar products or services to the same group of customers that you serve. Courts and contracts use this term to describe businesses that essentially go after the same slice of the market as yours.
Example
If you own a bakery and your former employee opens their own bakery across town, that new bakery would likely qualify as a competing business under any non-compete agreement you had in place.
Watch Out
The definition of what counts as a competing business can be surprisingly broad or narrow depending on how your contracts word it, so always read those clauses carefully before signing.
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.