BOND BY AN EMPLOYEE NOT TO COMPETE IN BUSINESS WITH EMPLOYER

 

BY THIS BOND I ______________________________________ [insert the name, address etc. of employee] bind myself to [employer] of [address. etc.] for the payment to him of the sum of [Rs. _____________]

Signed this _______ day of  ____________.

WHEREAS the said [employer]carries on business as [nature of the business] at [place or places] and has agreed to take the said [employee] into his employment [or has agreed to continue to employ the said [employee] in connection with the said business in the capacity of [nature of the employment] upon an express agreement that the said [employee] shall not while in the employment of the said, [employer] [or of his successors in business] whether in the capacity in which he is now employed or in any other capacity or during the period of _______ year [or months] next after he shall whether by reason of dismissal retirement or otherwise have ceased to be so employed directly or indirectly and whether as principal agent director of a company traveller servant or otherwise carry on or be engaged or concerned or take part in the business of _________ within ________ km. of __________ except on behalf or with the consent in writing of the said [employer] [or his successors in business] and also that in the event of his failing to observe or perform the said agreement he shall pay to the said [employer] [or his successors in business] or other the person or persons for the time being entitled to the benefit of the said agreement the sum of [Rs ___________] as and for liquidated damages. And also that he shall execute the above-written obligation conditioned as is hereinafter expressed.

NOW THE ABOVE-WRITTEN OBLIGATION is conditioned to be void in either of the cases following that is to say:

1. In case the said [employee] shall not while in the employment of the said [employer] [or of his successors in business] whether in his present or any other capacity or during the period of ______ years [or months] after he shall whether by reason of dismissal retirement or otherwise have ceased to be so employed directly or indirectly and whether as principal agent director of a company traveller servant or otherwise carry on or be engaged or concerned or take part in the business of ________ within _______ km of _______ except on behalf or with the consent in writing of the said [employer] [or his successors in business].
2. In case the said [employee] shall fail to perform or observe the said agreement and shall in that event forthwith [or upon demand] pay to the said [employer] [or his successors in business] or other the person or persons for the time being entitled to the benefit of the said agreement the sum of [Rs. ____________] as and for liquidated damages.

Signed etc.

[Signature and seal of employee]