Competition protection clause

The non-competition clause is often included in the rental agreement by the contracting parties when renting out shops. It is intended to protect the retailer as a tenant from his landlord accepting interested parties from the same branch or with partially the same range in one of his other rented rooms. This means that the tenant can practically stay away from direct spatial competition. The Federal Court of Justice has proposed a sample formulation for a non-competition clause. It reads: 'The landlord undertakes not to rent sales areas to a company that sells goods that are managed by the tenant during the rental period.'