Dictionary

  • Covenant (in the context of contracts)

    A covenant in contract law refers to a promise made by one party to another to either do or refrain from doing a certain act. Covenants are formed “under seal”, which means that a deed is required to be “signed, sealed and delivered” for the covenant to be enforceable. A key aspect of a covenant is that the promise can be made and enforceable between the parties, in the absence of consideration. It is in this sense that a covenant differs from a “contract condition”, which requires consideration for the obligation to be enforceable.

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