Business and Professions Code § 16602

CHAPTER 1. Contracts in Restraint of Trade

Current as of September 28, 2026Bus. & Prof. Code, § 16602Official source ↗

Amended by Stats. 2002, Ch. 179, Sec. 2. Effective January 1, 2003.

(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.