Can a non-competition agreement be enforced in California?
A. In most cases a covenant not to compete cannot be enforced in California unless it is given in connection with the sale of an interest in a business in which the seller has sold and been paid for “good will”, or is necessary for the protection of trade secrets. Good will is generally understood to be the tendency of the customers of a business to continue to patronize it, an intangible asset which is over and above the value of the tangible assets of a business.
