Definition - What does Noncompetition Agreement mean?
Noncompetition agreement is an agreement between two parties where one party agrees not to be in competition against the other for a particular thing and for a certain period of time. For example, a sales person may sign a noncompetition agreement which restricts them from using or working on a contract gained by another sales person or from working for a particular type of business, etc.
Justipedia explains Noncompetition Agreement
Noncompetition agreements are also very common in sale of business scenario. In this case, the seller might agree to the fact that they will not be competing directly against the party acquiring the business for a fixed period of time. Different states treat noncompetition agreement differently.