Which of the following is NOT an example of a restrictive clause?

Which of the following is NOT an example of a restrictive clause?

• A. Confidentiality
• B. Non-compete
• C. Non-solicitation
• D. Termination clause

Answer: (D)

Restrictive covenants are clauses that limit a party’s actions in the future, either during the relationship or after it ends. Confidentiality, non-compete, and non-solicitation are classic examples because they impose ongoing limits on what you can disclose, whom you can work for, or whom you can solicit. A termination clause, by contrast, sets out how the contract ends—how notice is given, what events trigger termination, and any wind-down or post-termination steps related to ending the agreement. It doesn’t impose an ongoing restraint on future conduct in the way covenants do. So the termination clause is not a restrictive covenant.

Restrictive covenants are clauses that limit a party’s actions in the future, either during the relationship or after it ends. Confidentiality, non-compete, and non-solicitation are classic examples because they impose ongoing limits on what you can disclose, whom you can work for, or whom you can solicit.

A termination clause, by contrast, sets out how the contract ends—how notice is given, what events trigger termination, and any wind-down or post-termination steps related to ending the agreement. It doesn’t impose an ongoing restraint on future conduct in the way covenants do. So the termination clause is not a restrictive covenant.