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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.

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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 assumptionWhat the law actually does
The assumptionA verbal promise not to compete bindsWhat the law actually doesNot enforceable unless written and signed by the person bound
The assumptionAny signed covenant is enforceableWhat 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)
  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.

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