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The Basic Non-Compete Agreement is essential for businesses operating in Canada seeking to protect their legitimate interests from competitive activities by current or former employees, contractors, or business partners. This document is typically used when an employment or business relationship begins, during a business sale, or when engaging contractors with access to sensitive information. The agreement must be drafted in accordance with Canadian legal principles, which generally require that non-compete provisions be reasonable and narrowly tailored to protect legitimate business interests without unduly restricting an individual's ability to earn a livelihood. The document should clearly define the scope of restricted activities, duration of restrictions, and geographic limitations, while ensuring compliance with both federal and provincial Canadian laws governing restrictive covenants.

1. Parties: Identifies and defines the parties to the agreement, including the employer/business and the individual bound by the non-compete

2. Background: Establishes the context of the agreement, including the business relationship between the parties

3. Definitions: Defines key terms used throughout the agreement, including 'Competitive Business', 'Restricted Period', and 'Territory'

4. Non-Competition Obligations: Details the specific restrictions on competitive activities, including scope of prohibited activities

5. Duration: Specifies the time period during which the non-compete obligations will remain in effect

6. Geographic Scope: Defines the territorial limitations of the non-compete restrictions

7. Acknowledgments: Contains statements acknowledging the reasonableness of the restrictions and receipt of consideration

8. Remedies: Outlines the available remedies in case of breach, including injunctive relief

9. Governing Law: Specifies that Canadian law governs the agreement and identifies the relevant jurisdiction

10. Severability: Ensures that if any provision is found invalid, the remainder of the agreement remains in effect

11. Entire Agreement: Confirms that the document represents the complete agreement between the parties

12. Execution: Signature block and execution details