A North Dakota non-compete agreement is a written agreement in which an employee or business partner promises not to compete with a business for a set time. Are non-compete agreements enforceable in North Dakota? Only where the statute allows them. The state voids any agreement that restrains a lawful trade, with exceptions for a business sale or dissolution.[1]
Last Updated: October 2026. This guide is reviewed and updated regularly to reflect current North Dakota law. If you notice an error or outdated information, please contact us.
Build Your Document
Answer a few simple questions to make your document in minutes
Save and Print
Save progress and finish on any device, download and print anytime
Sign and Use
Your valid, lawyer-approved document is ready
Not as a general rule. Section 9-08-06 of the North Dakota Century Code (N.D.C.C.) voids any agreement that restrains anyone from exercising a lawful profession, trade, or business of any kind. A non-compete agreement is enforceable only where the statute permits it, and only on the conditions the statute attaches.[1]
A contract by which anyone is restrained from exercising a lawful profession, trade, or business of any kind is to that extent void, except:
The statute lists exceptions. Two of them cover agreements between the people involved in a business:
Signing does not settle the question. The statute does. Where it voids the restraint, the non-compete clause is void to that extent, and where it permits a restraint, the conditions it attaches apply.[1]
The FormsPal North Dakota non-compete agreement is a short agreement between a worker, called the Agent, and a business, called the Company. The Agent can be an employee or an independent contractor. It sets the term, the non-compete clauses, a non-solicitation promise, and North Dakota as the governing law. The numbered clauses below follow the form in order.
FormsPal also has a general non-compete agreement template. If you download the PDF, you can fill it in and sign it with our PDF editor.
Only where the statute permits them. The general rule voids a non-compete clause that restrains a lawful profession, trade, or business to that extent. The sale of a business's goodwill and the dissolution of a partnership, limited liability company, or corporation are two exceptions, and both ask for a reasonable geographic area.[1]
It depends on whether the statute voids the restraint. An agreement that restrains anyone from exercising a lawful profession, trade, or business is void to that extent. If an exception covers your agreement, its conditions apply.[1] Ask a North Dakota attorney about your own situation.
In the two exceptions described above, yes. Each one refers to a reasonable geographic area.[1]
General information, not legal or tax advice.
