North Dakota § 9-08-06 In restraint of business void - Exceptions

North Dakota Statutes

§ 9-08-06 — In restraint of business void - Exceptions

North Dakota § 9-08-06

Title 9Contracts and Obligations

Ch. 9-08Unlawful and Voidable Contracts

This text of North Dakota § 9-08-06 (In restraint of business void - Exceptions) is published on Counsel Stack Legal Research, covering North Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

N.D. Cent. Code § 9-08-06 (2026).

Text

A contract by which anyone is restrained from exercising a lawful profession, trade, or business of any kind is to that extent void, except:

1.A person that sells the goodwill of a business and the person's partners, members, or shareholders may agree with the buyer to refrain from carrying on a similar business within a reasonable geographic area and for a reasonable length of time, if the buyer or any person deriving title to the goodwill from the buyer carries on a like business in that area.

2.Partners, members, or shareholders, upon or in anticipation of a dissolution of a partnership, limited liability company, or corporation; upon or in anticipation of a dissociation of a partner or member; or as part of an agreement addressing the dissociation or sale of a partner, member, or sha

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A contract by which anyone is restrained from exercising a lawful profession, trade, or
business of any kind is to that extent void, except:
1. A person that sells the goodwill of a business and the person's partners, members, or
shareholders may agree with the buyer to refrain from carrying on a similar business
within a reasonable geographic area and for a reasonable length of time, if the buyer
or any person deriving title to the goodwill from the buyer carries on a like business in
that area.
2. Partners, members, or shareholders, upon or in anticipation of a dissolution of a
partnership, limited liability company, or corporation; upon or in anticipation of a
dissociation of a partner or member; or as part of an agreement addressing the
dissociation or sale of a partner, member, or shareholder's ownership interest, may
agree that all or any number of them will not carry on a similar business within a
reasonable geographic area where the partnership, limited liability company, or
corporation business has been transacted, or within a specified part of the area.