I want to know if I am still legally bound by an NDA contract that I signed with my employer when I first started the job. The NDA states that I cannot compete with the store for a 1-year uninterrupted period after termination. I quit this job 6 months ago, however, the store owner/employer just recently sold the store (which is part of a franchise) to another person. I want to know if I am still bound by this NDA since he is no longer the owner specified in the NDA contract.

  • 2
    Ask your lawyer. – Nij Feb 8 at 6:10
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    I would say someone could talk about the enforceability of "no compete" clauses and provide some refs to get more info. – Harper - Reinstate Monica Feb 8 at 8:04
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    NDA is not a Non Compete. it is a disclosure thing. The Non-Compete Clause is, in essence, a different contract. – Trish Feb 8 at 15:29
  • Yeah, someone could. When it involves a specific contract for a specific person, that "someone" is the person's lawyer. @Harper-ReinstateMonica Otherwise we have plenty of potential generic duplicates, so keeping this one open is pointless. – Nij Feb 9 at 0:52

Non-compete clauses are usually drafted in the sense of not harming the company, and therefore the sale of a company does not extinguish its rights (and obligations) with respect to others.

You would need to assess whether the language in your clause or contract permits a reasonable interpretation that the intent is to avoid harming the owner with whom you signed it. However, that seems unlikely.

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