Covenants 101

 


PDF: Covenants 101

Covenant Defined

It is simply: A contract based on law.

Webster defines a “covenant” as a “usually formal, binding agreement between two or more persons, to do or not to do something; a document containing the terms of the agreement.”

A covenant is an agreement between parties based on law. When one party breaks the agreement, the other party is no longer bound by that agreement, either.

This language is still in use today and is very common to begin a written lease agreement as follows, “We hereby covenant and agree…”

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