This clause stops you from saying negative things about the other party—usually your former employer, business partner, or the company you're selling. It applies even after the contract ends. For example, you can't tell journalists or social media that "the company was badly run" or "my boss was dishonest." These clauses are increasingly controversial; some US states now limit them because they can prevent people from speaking truthfully about illegal conduct or safety issues.
Try to carve out exceptions for truthful statements, legal proceedings, and protected disclosures (like reporting a crime to police). Propose language like "the parties agree not to make false or misleading statements" instead of a blanket ban on criticism—this protects the other party from actual harm while preserving your right to speak truthfully. If they won't budge, at least limit it to a specific time period (2-3 years) rather than forever. ---
Frequently Asked Questions
What does this clause mean in simple terms?
This clause stops you from saying negative things about the other party—usually your former employer, business partner, or the company you're selling.
Why should I care about this clause?
It applies even after the contract ends.
What are my options?
For example, you can't tell journalists or social media that "the company was badly run" or "my boss was dishonest." These clauses are increasingly controversial; some US states now limit them because they can prevent people from speaking truthfully about illegal conduct or safety issues.