Legal Definitions - executed covenant

An executed covenant refers to a formal promise or agreement, typically found within a legal document like a contract or deed, that has already been fully performed or carried out. Unlike an executory covenant, which represents a promise for future action, an executed covenant signifies that the agreed-upon action has already taken place, and the obligation has been discharged.

Here are some examples illustrating an executed covenant:

• Real Estate Development: A property developer sells homes in a new community and includes a covenant in the deeds promising to build a community swimming pool and tennis courts for residents. Once the developer completes the construction of both the swimming pool and the tennis courts, that specific covenant becomes an executed covenant. The promise has been fulfilled, and the obligation to build those amenities is discharged.

• Business Contract for Services: A marketing agency enters into a contract with a client, covenanting to design and launch a new website by a specific deadline. After the agency successfully designs the website, obtains client approval, and launches it live on the internet by the agreed-upon date, the covenant to design and launch the website is considered an executed covenant. The promised service has been delivered.

• Employment Agreement (Post-Employment): An executive leaves a company, and their separation agreement includes a covenant stating they will not solicit any of the company's existing clients for a period of two years following their departure. If, after the two-year period has passed, the executive has not contacted or attempted to solicit any of the former company's clients, then that non-solicitation covenant is an executed covenant. The promised restraint has been observed for the full duration.