Noncompetition Agreements
Unlike many other states, in California any contract that restrains a person from engaging in a lawful profession is void as a matter of public policy. There is an exception to this rule if a person buys the goodwill of a business. In that situation, the seller may agree not to carry on a similar business within a specific geographic area in which the business has been sold, so long as the buyer carries on a similar business in that area. (See California Business and Professions Code Section 16601).
