competitor
Definition
A competitor is any other business that sells the same or similar products or services to the same group of customers you are targeting. Courts and contracts often use this term to define the boundaries of non-compete agreements, antitrust rules, and fair business practices.
Example
If you own a local pizza restaurant, other pizza restaurants and even fast food burger joints could legally qualify as your competitors because they compete for the same hungry customers.
Watch Out
When you sign contracts that restrict what you can do with competitors, make sure the definition of 'competitor' in that contract is narrow and specific, because a vague definition could accidentally restrict you from doing business with companies you never intended to avoid.
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.