Legal Definitions - personal covenant

A personal covenant is a promise or agreement made between specific individuals or entities that binds only those parties. Unlike covenants that "run with the land" (which affect future owners of a property), a personal covenant is tied to the individuals who created it, not to any property they might own. This means the obligations and rights under a personal covenant generally do not automatically transfer to new owners or successors unless explicitly agreed upon. It creates a personal obligation between the original parties, enforceable only against them.

• Example 1: Business Partnership Agreement

  Imagine two business partners, Sarah and Tom, forming a consulting firm. In their partnership agreement, they include a clause stating that if either partner decides to leave the firm, they personally promise not to solicit any of the firm's existing clients for a period of three years. This is a personal covenant because it's a direct promise between Sarah and Tom. It binds only them as individuals. If Sarah later sells her share of the business to another person, that new owner is not automatically bound by Sarah's personal non-solicitation promise, nor do they automatically gain the right to enforce Tom's promise against him, unless the agreement specifically assigns these rights and obligations.

• Example 2: Employment Contract

  Consider an employment contract for a senior executive, Maria, at a technology company. The contract contains a clause where Maria personally agrees not to disclose any proprietary software code or trade secrets to competitors, even after her employment with the company ends. This is a personal covenant because it's a promise made by Maria directly to her employer. It creates a personal obligation for Maria to maintain confidentiality. While the company could enforce this against her, the obligation rests solely on Maria as an individual; it doesn't attach to any property she owns or automatically transfer to a new employee who might take her place.

• Example 3: Residential Lease Agreement

  Suppose a tenant, Alex, signs a lease for an apartment. The lease includes a specific provision where Alex personally promises to water and care for the landlord's rare collection of indoor plants, which are kept in the apartment, and return them in good condition at the end of the lease term. This is a personal covenant. Alex's promise to care for the plants is a specific obligation he undertakes personally, separate from his general duties as a tenant of the property itself. If Alex were to sublet the apartment to another individual, that subtenant would not automatically be bound by Alex's personal promise to care for the plants, nor would they gain the right to demand plants from the landlord, unless explicitly agreed upon in the sublease or a separate arrangement.