Joenel Umal

Non Competition Agreement

Don goes into business for himself. He buys a hotdog cart and sets it up in a prime spot on a busy downtown corner, right near a large bank.

One day, his friend, Jim, approaches him and asks Don if he can lend him some money. Don refuses.

“But why?” asks Jim. “Everyone knows you’re doing well, and I’m not asking for much.”

“Well, Jim, in order to get this spot. I had to sign a Non Competition Agreement with that bank over there. According to the terms of the agreement, they don’t sell hot dogs and I don’t lend money.”