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Personal Service Contract

Definition

An employment agreement made between an employer and a specific employee for the provision of unique services or talents by the employee to the employer. Specific enforcement of a personal service contract, for the duration of the contract, may be appropriate when an employee refuses to perform during the period of employment, was furnishing unique services, has expressly or by clear implication agreed not to compete for the duration of the contract, and the employer is exposed to irreparable injury. Once the personal service contract has terminated, however, equitable relief is potentially available only to prevent injury to the employer from unfair competition or similar tortious behavior, or to enforce an express and valid anticompetitive covenant.

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