Covenant Not to Compete In Texas Law

Sections 15.50-15.52 of the Texas Business and Commerce Code govern the validity and enforceability of covenants not to compete. See TEX. BUS. & COM. CODE ANN. 15.50-15.52 (Vernon Supp. 2000). If a promisor breaches a covenant not to compete, section 15.51 of the Texas Business and Commerce Code provides a court may award the promisee damages, injunctive relief, or both. See Id. 15.51. Section 15.50 of the Business and Commerce Code provides: a covenant not to compete is enforceable if it is ancillary to or part of an otherwise enforceable agreement at the time the agreement is made to the extent that it contains limitations as to time, geographical area, and scope of activity to be restrained that are reasonable and do not impose a greater restraint than is necessary to protect the goodwill or other business interest of the promisee. TEX. BUS. & COM. CODE ANN. 15.50.