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A covenant is a formal agreement or promise that is usually included in a contract or deed. It says that someone will or won't do something. For example, a non-compete agreement is a type of covenant. In property law, covenants can include agreements not to build a fence or to maintain a shared driveway. Covenants in contracts are governed by standard contract rules and only apply to the parties involved. Covenants related to property are subject to their own set of rules and can sometimes be applied to future owners of the property. There are two types of property covenants: real covenants and equitable servitudes. Real covenants are enforceable against future owners of the property and require two kinds of privity to be established. Equitable servitudes do not require privity but do require notice to be enforceable against future property owners. If someone breaks a covenant, the remedy can be monetary damages or specific performance.
A covenant is a formal agreement or promise that is included in a contract or deed. It outlines what a person or group of people will or will not do. Covenants are important in contract law and property law.
One example of a covenant is a non-compete agreement. This is a promise made by an employee not to work for a competitor for a certain period of time after leaving their current job.
In property law, covenants can include agreements not to build a fence or agreements to maintain a shared driveway. For example, if two neighbors agree not to build a fence taller than 4 feet, this is a covenant that runs with the land. This means that if one neighbor sells their property, the new owner is also bound by the covenant.
Under the common law, covenants in property are separated between real covenants and equitable servitudes.
Real covenants are covenants that run with the land. This means that they are enforceable against and/or by future owners of that land. For example, if X creates a real covenant that states “X and his assigns will not build a fence taller than 4 feet” and proceeds to sell his property to Y, Y cannot create a fence taller than 4 feet. A real covenant is only enforceable if it was created intentionally, it relates to the property in question, and two kinds of privity are established. Additionally, a real covenant must be in writing.
Equitable servitudes have similar requirements as real covenants; however, they do not require privity. Instead of privity, an equitable servitude requires notice to be enforceable against future property owners. This notice can either be actual notice or constructive notice. Equitable servitudes also differ from real covenants in that they are enforceable through equity measures. As a result, if monetary damages are inadequate, a party suing for breach of an equitable servitude may be granted specific performance.
Overall, covenants are important legal agreements that help to ensure that people follow through on their promises. They can be used in a variety of contexts, from employment contracts to property agreements.
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