In restraint of business void - Exceptions
N.D. Cent. Code § 9-08-06
in effect9-08-06. In restraint of business void - Exceptions
A contract by which anyone is restrained from exercising a lawful profession, trade, or
business of any kind is to that extent void, except:
1. A person that sells the goodwill of a business and the person's partners, members, or
shareholders may agree with the buyer to refrain from carrying on a similar business
within a reasonable geographic area and for a reasonable length of time, if the buyer
or any person deriving title to the goodwill from the buyer carries on a like business in
that area.
2. Partners, members, or shareholders, upon or in anticipation of a dissolution of a
partnership, limited liability company, or corporation; upon or in anticipation of a
dissociation of a partner or member; or as part of an agreement addressing the
dissociation or sale of a partner, member, or shareholder's ownership interest, may
agree that all or any number of them will not carry on a similar business within a
reasonable geographic area where the partnership, limited liability company, or
corporation business has been transacted, or within a specified part of the area.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://ndlegis.gov/cencode/t09c08.pdf#nameddest=9-08-06Fetched: 10/16/2026