Home – New Forums Starting your journey HELP – Confidentiality Agreement

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  • #987335
    Only Kindness Matters
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    Hi

    I really need some help. We are looking at buying a business in the area we are looking there are 2 shops for sale.

    I have contacted one of them and they have asked for a confidentiality agreement which is fine except they have in the agreement that you cannot buy or start up anything in area for 2 years if you choose not to buy there business.

    How enforceable is that? I don’t understand the reason when they are selling the business.

    And if there figures aren’t great you can’t then buy the other business that’s for sale!!

    I have contacted the other business and they have given us their figures with no problem at all but it is hard to compare without the other company.

    I’m a bit confused by it – is it common?

    Thoughts much appreciated – thanks

    #1162195
    Hatching_It
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    Sounds like they’re hiding something.

    #1162196
    Dave Gillen – Former FS Concierge
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    Sounds absurd Rachael. With such an unreasonable request, it makes you wonder what other surprises are in store when dealing with them.

    I’d talk to some brokers and arm yourself with “I’ve spoken to a bunch of brokers and they’ve all said that that’s neither a common nor reasonable request (and that I shouldn’t make that agreement).” Then perhaps they’ll reconsider their terms.

    Good luck!

    Dave

    #1162197
    jabar
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    To be honest I wouldn’t trust them, it may be they are hiding something as Hatching_it said, or it might be they are afraid someone will copy their idea, but I wouldnt sign any agreement with them.

    #1162198
    LucasArthur
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    Re: HELP – Confidentiality Agreements

    Here here on other comments .. Run from the business trying to enforce that.. My only thought is that they have prepared the confidentiality agreement themselves and have added that in from an employment contract.

    If you like the business, just ask the question “did you realise you have a clause in your agreement that will inhibit the sale of your business and actually stop people from even considering it?”

    Even in employment contracts it’s a difficult clause to enforce as you are taking away someone’s ability to earn a livelihood from their expertise. Almost restriction of trade :) don’t take my comments as advice though, as I am certainly not legally capable of providing that.

    If you did pursue the odd business, ensure you leave no rock unturned as the appear to play with words to hide a little having that comment in the confidentiality agreement.

    Cheers
    Jason

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1162199
    Only Kindness Matters
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    Thanks everyone for the posts just wanted to check that there wasn’t some major change that had missed.

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