Competitive Capacity Clause Samples
The Competitive Capacity clause defines the limits or requirements regarding a party's ability to engage in business activities that may compete with the other party. Typically, this clause outlines whether and to what extent a party can participate in similar markets, offer comparable products or services, or enter into agreements with competitors during the term of the contract. For example, it may restrict a supplier from selling to direct competitors or require notification before expanding into overlapping business areas. The core function of this clause is to protect each party’s competitive interests and prevent conflicts of interest or unfair competition during the contractual relationship.
Competitive Capacity. For purposes of this Agreement, the term “Competitive Capacity” shall mean: (i) performing tasks or duties similar to those Executive performed in his last year of employment at the Company for a Competitor of the Company; (ii) managing/supervising those who, for a Competitor of the Company, perform tasks or duties similar to those which Executive performed in his last year of employment at the Company; or (iii) performing, on behalf of a Competitor of the Company, tasks or duties in which Executive would utilize any Confidential Information or trade secrets that he learned in the course of his relationship with the Company.
Competitive Capacity. 5.1. The supplier must ensure that the components that are the subject matter of this contract are able to successfully [***]
5.2. Within this context, CARIAD is entitled to check this competitiveness.