Delaware Non-compete Agreement Template

A Delaware non-compete agreement is a written contract in which an employee promises not to work for a competitor or start a competing business for a set time after leaving. Delaware law voids a covenant not to compete between physicians when it limits where or for how long a physician may practice medicine after the agreement ends.[1] Build a free agreement with the builder below, or download the PDF template and fill it in.

Last Updated: October 2026. This guide is reviewed and updated regularly to reflect current Delaware law. If you notice an error or outdated information, please contact us.

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Employers use a covenant not to compete template to protect business details such as manufacturing methods, client and customer information, salaries, pricing, and plans for future products. Companies often sign the agreement when they hire a worker, before the person learns those details.

Agreement Terms

The Delaware template sets the main terms of the restriction in sections 1 to 3 of the form. They cover how long the agreement lasts, what the former employee may not do, and where the restriction applies. You fill in the blanks and tick the boxes that match your arrangement.

Timeframe and Duration

Section 1 starts the agreement on the Effective Date and keeps it running while the person works for the company. It then continues for the number of years you enter after the person leaves. Many companies choose a short period, and the right length depends on the field and the work.

Scope of the Restriction

Section 3 bars the person from doing business with, working for, or holding an interest in a competing business. The form gives you these choices:

  • Tick one box: any business that competes with the company, or a list of named businesses.
  • Limit the restriction to a geographic area that you describe.
  • Tick whether the restriction applies to online business.

Parties Info, Signatures, and Dates

The template names two parties and the date the agreement takes effect. The form calls the worker the Agent and the hiring business the Company. Enter each party's name and address at the top of page 1, then add the Effective Date.

The last page has a signature block for each party, with lines for a signature, a printed name, and a title. Under the form's Miscellaneous section, a later change counts only if it is written down and signed by both the Company and the Agent.

Other Clauses in the Template

Four more sections finish the agreement. They protect the company's staff and customers, let a court adjust a restriction that is too broad, pick Delaware law, and cover general terms. These sections are already written in the template.

  • Section 4, Non-Solicitation. During the agreement, the Agent may not lure away the Company's employees, contractors, customers, or vendors without the Company's written consent.
  • Section 5, Limitation. If a court finds a restriction unreasonable because of its length or area, the parties agree the court may reform it so that it becomes reasonable.
  • Section 6, Applicable Law. The form names Delaware law as the governing law. You enter the Delaware county whose state or federal court may hear a lawsuit.
  • Section 7, Miscellaneous. This section keeps the other clauses in force if one is invalid and makes the agreement the whole understanding between the parties.

Delaware Non-compete Laws and Restrictions

Delaware's statute on this topic covers physicians. A covenant not to compete between physicians is void if it limits where or for how long a physician may practice medicine after the main agreement ends.[1]

Section 2707 of the 6 Del. C. says:

Any covenant not to compete provision of an employment, partnership or corporate agreement between and/or among physicians which restricts the right of a physician to practice medicine in a particular locale and/or for a defined period of time, upon the termination of the principal agreement of which the said provision is a part, shall be void.

6 Del. C. § 2707

The same section keeps the rest of a physician's agreement in force:

  • All other provisions of the agreement remain enforceable at law.
  • That includes a provision that requires payment of damages in an amount reasonably related to the injury suffered when the main agreement ends.[1]

Delaware has no statute that does any of the following:

  • sets a limit on how long a non-compete may last or how large an area it may cover
  • requires a non-compete to be in writing or to be supported by consideration, meaning something of value given in exchange for the promise
  • creates an exception for a sale of a business, low-wage workers, or third parties
Not sure how a court would treat your terms? Ask a Delaware attorney to review the draft before anyone signs.

Frequently Asked Questions

What voids a non-compete agreement in Delaware?

Under Section 2707 of the 6 Del. C., a covenant not to compete between physicians is void. That applies when the covenant limits where or for how long a physician may practice medicine after the main agreement ends. The rest of that agreement stays enforceable.[1]

Can I limit the agreement to one area or to online business?

Yes. Section 3 of the template has a box that limits the restriction to a geographic area you describe. Two more boxes say whether the restriction applies to online business.

General information, not legal or tax advice.

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Sources

  1. 6 Del. C. § 2707.
Published: Jun 23, 2022
Jennifer M. Settles
Jennifer M. Settles
Author & Attorney
With over 25 years of experience as a business and transactional attorney, Jennifer has mastered the craft of closing highly successful deals for her clients. Through her wide-ranging expertise in commercial contracts, real estate transactions, M&A and corporate law, Jennifer secures results that are second-to-none.