The Enforceability of a Restrictive Covenants and Agreements Against Competition in New Jersey

Fredrick P. Niemann of Hanlon Niemann, a Central New Jersey Business and Corporate Law Firm discusses New Jersey’s Laws on the enforceability of restrictive covenants and agreements against competition in employment, contracts, the sale and purchase of a business and in franchise agreements. He explains that New Jersey law presumptively favors the enforceability of restrictions if reasonable in time, geography and business purpose but Fred also identifies a number of defenses and legal strategies that can be used to defeat the enforcement of such restrictions. New Jersey is evolving in its approach to restrictive covenants and will not allow them to be used arbitrarily just to suppress competition.