Fair Contract Terms Act

Fair Contract Terms Act

Preamble

Whereas It is necessary to limit the terms of certain contracts;

THE SENATE OF SIMDEMOCRACY PROCLAIMS:

Article 1: Limitation of clauses which prohibit competition, etc.

§1. All non-compete clauses in employment contracts or agreements are hereby rendered null, void, and unenforceable, regardless of the date of execution.

§1.1. A non-compete clause, for the purposes of this Act, is a term in a contract which restrains a party from engaging in a lawful profession, trade or business.

§2. Contract Terms which seek to limit the disclosure of information remain valid if they clearly and reasonably define the information which is limited from disclosure.

Article 2: Limitation of clauses which prohibit the commencement of legal proceedings

§1. A contract term which completely restricts any party from enforcing their rights by the usual legal proceedings, or which limits the time which a party must enforce their rights by, or which extinguishes or discharges the rights or liabilities of any party to a contract, so as to restrict the ability of a party to enforce their rights, is void.

§2. This Article shall not render illegal a contract, by which parties agree that any dispute which may arise between them in respect of any subject or class of subjects shall be referred to arbitration, and that only the amount awarded in such arbitration shall be recoverable in respect of the dispute so referred, so long as all parties are aware of and have agreed to such terms, and the provision of the contract is not contingent on the agreement of all parties to the arbitration clause.