Versenytilalmi

Versenytilalmi refers to contractual restrictions that limit a person’s ability to engage in activities that compete with a party’s business. These clauses are commonly found in employment contracts and business sale agreements, and may apply during the term of a contract or for a defined period after it ends.

Legally, versenytilalmi kikötések must be in writing and must protect legitimate business interests such as confidential information, client relationships, and specialized know-how. They must be limited in scope, geography, and duration, and in many places require compensation during the restraint.

Enforceability depends on reasonableness; overly broad restrictions can be void or unenforceable; courts may strike or adjust terms to reflect reasonable limits. The existence of a non-compete is often balanced against the employee’s right to work and earn a living.

Non-solicitation and confidentiality provisions are related tools often used as alternatives or complements; non-solicitation restricts hiring or soliciting former clients or colleagues but may be easier to enforce, while versenytilalmi provisions directly limit competing business activities.

In Hungary and the European Union, versenytilalmi agreements are subject to national laws and case law; parties should obtain legal advice when drafting or challenging such clauses.