State Law

Business & Professions Code-Division 7-Part 2-Chapter 1. Contracts in Restraint of Trade

07/28/2023 California Section 16602

Partnership arrangements

Restrictive Covenants

(a) Any partner may, upon or in anticipation of any of the circumstances described in subdivision (b), agree that he or she will not carry on a similar business within a specified geographic area where the partnership business has been transacted, so long as any other member of the partnership, or any person deriving title to the business or its goodwill from any such other member of the partnership, carries on a like business therein.

(b) Subdivision (a) applies to either of the following circumstances:

(1) A dissolution of the partnership.

(2) Dissociation of the partner from the partnership.