The Clause About Working Elsewhere
G.S. 75-4 — a covenant limiting business in the state must be in writing and signed
In North Carolina, no contract limiting anyone's right to do business anywhere in the State is enforceable unless it is in writing and signed by the party who agrees not to enter into the business within the territory.
Writing is a floor, not a pass. The section does not make legal any agreement not to do business that is illegal under another section of the chapter. A written and signed covenant still has to be lawful on its own terms.
| The assumption | What the law actually does |
|---|---|
| The assumptionA verbal promise not to compete binds | What the law actually doesNot enforceable unless written and signed by the person bound |
| The assumptionAny signed covenant is enforceable | What the law actually doesWriting does not legalize a covenant otherwise illegal |
Non-solicitation and confidentiality agreements, trade secret law and the sale of a business follow rules of their own and are not all on this page. Whether a particular clause is enforceable is a question for a licensed North Carolina attorney.
Sources for this section (1)
- G.S. 75-4 — Contracts to be in writing
Legal information, not legal advice. Verified as of September 2026. Applying it to a particular situation is the work of a licensed North Carolina attorney.