If you have a non-compete agreement and a sum of money is offered in the agreement but never paid, does this make it unenforceable?
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If you have a non-compete agreement and a sum of money is offered in the agreement but never paid, does this make it unenforceable?
I signed a non-compete which was offering a very low amount of money, $10 to sign it and $10 a month after I leave the company. I never received the $10 to sign it and other people which have left never got the $10 a month after leaving. If this happens to me, would this make the non-compete unenforceable?
Asked on August 13, 2011 Texas
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
For a definitive answer, you should bring a copy of the agreement to an attorney who can review it and your situation in detail--the specific language in an agreement like this is critical. As a general matter, if one party to a contract does not honor its obligations, that may let the other party out of its obligations; and when the obligation is to pay a sum of money in exchange for the other party giving up its rights, failure to pay will very often allow the other party to terminate the agreement without penalty. In this case, a failure to pay the consideration in the contract--the $10 up front and $10/month--may mean that you are not bound by the non-compete. That said, you should have an attorney review the contrat for you.
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