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Legal Definitions - covenant
Definition of covenant
A covenant is a formal and legally binding promise or agreement, typically written into a contract or a property deed. It obligates one party to either perform a specific action or refrain from doing something. Covenants are crucial in ensuring that parties uphold their commitments, whether in business dealings or regarding the use and transfer of property.
In a Business Contract: Imagine a freelance graphic designer signs a contract with a client. The contract includes a covenant stating that the designer will deliver the final design files by a specific date, say, October 31st. This is a covenant because it's a formal promise within the contract that obligates the designer to complete a particular action (deliver files) by a set deadline. If the designer fails to meet this deadline, they would be in breach of this covenant.
In Property Deeds (Homeowners' Association Rules): Consider a homeowner who buys a house in a community governed by a Homeowners' Association (HOA). The property deed includes covenants that require all residents to maintain their front yards to a certain standard, such as regularly mowing the lawn and trimming hedges. These covenants are legally binding promises that "run with the land," meaning they apply to anyone who owns the property, not just the original buyer. They ensure the aesthetic consistency and value of the neighborhood.
In Property Deeds (Land Use Restrictions): A large piece of land is sold, and the deed contains a covenant stipulating that no commercial buildings can ever be constructed on the property; it must remain for residential use only. This covenant is a formal promise that restricts future development, ensuring the land's character is preserved. It binds all subsequent owners of the land, preventing them from using it for commercial purposes, even if they were not the original parties to the sale.
Simple Definition
A covenant is a formal agreement or promise, typically found in a contract or property deed, to perform or refrain from a specific act. While contractual covenants primarily bind the original parties, those related to property can sometimes be enforced by or against future owners of the land. In property law, these are distinguished as real covenants, which require specific legal relationships, or equitable servitudes, which require notice to bind future owners.
