A non-competition clause, also known as a non-compete agreement, is a legally binding provision in a contract that restricts an individual or business from engaging in activities that compete with the other party. This clause is typically included in employment contracts or business agreements to protect the interests of the employer or the business. It prohibits the individual or business from working for or starting a similar business in the same industry, geographic location, or for a specific period of time after the termination of the contract. Non-competition clauses are designed to prevent unfair competition and protect confidential information, trade secrets, and customer relationships. They are often subject to negotiation and must be carefully drafted to ensure they are reasonable and enforceable.