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Can a non-solicitation clause be enforced?

Provo, UT |

I worked for a captive insurance agent and earned commissions only. He would 10-99 me at the end of the year. I was let go in Sept. after four years for unknown reasons. I did not have a non-solicitation or non-compete agreement with him as my employer. However, I did have on with the captive company he worked for. It is a non-solicitation agreement. In the contract for appointment with the company it states that "Appointee IS NOT and employee or independent contractor of the Companies" and that I only work for the agent. I never recieved anything from the company other than the appointment to sell their products to the people that I solicited. It also says that the company shall have no obligation to compensate Appointee for services provided as an Appointee of Companies. My question is would the non-solicitation hold up in utah since I wasn't an employee of the company only that of the agent and he didn't require one?

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Attorney answers 1


I would need a little more information to answer your question completely, however, it sounds as though you did not sign a non-solicitation agreement. While the laws concerning the enforceability of non-solicitation agreements varies from state to state, the general rule is that you have to have agreed to the non-solicitation in order for it to be enforceable. As with all contracts, there needs to be a “meeting of the minds”. It is possible that the non-solicitation agreement will not bind you.

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