Definition

Non-solicitation clause

A non-solicitation clause prevents a person from approaching a business’s customers, suppliers or employees for a defined period. It is narrower than a non-compete, because it restricts who someone may contact rather than whether they may work in the industry at all.

Reviewed

Because it restrains less, a non-solicitation covenant is generally easier to enforce than a full non-compete. Courts assess restrictive covenants against what is reasonably necessary to protect a legitimate interest, and a clause aimed squarely at the relationships a buyer paid for is a more proportionate answer than one barring a seller from the trade entirely.

Where the drafting matters

  • Which customers are covered — everyone, or those the seller dealt with in a defined recent period
  • Whether it captures accepting unsolicited approaches, or only actively soliciting
  • Whether employees are covered as well as customers, and at what level
  • Duration, which must be tied to how long the relationships realistically take to transfer

Sources

This definition is checked against primary sources. Links were last confirmed on the dates shown.

  1. 01
    Canada Revenue AgencyGovernment
    Selling a business
    canada.ca·Checked Aug 14, 2026
  2. 02
    Treadstone LawLegal commentary
    How Long Can a Seller's Non-Compete Last in an Ontario Business Sale?
    treadstonelaw.ca·Checked Aug 14, 2026
  3. 03
    Treadstone LawLegal commentary
    Are Non-Compete Clauses Enforceable Against Regulated Professionals Selling a Practice in Ontario?
    treadstonelaw.ca·Checked Aug 14, 2026
  4. 04
    Treadstone LawLegal commentary
    Key Employee Retention Agreements
    treadstonelaw.ca·Checked Aug 14, 2026

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