Covenant

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A formal agreement or promise, usually included in a contract or deed, to do or not do a particular act; a compact or stipulation made in writing or by parol.

There are numerous types of covenants, like absolute covenants, active covenants, affirmative covenants, restrictive covenants, express covenants, implied covenants, real covenants, personal covenants, and many others. The categorization of a covenant depends on what the covenant requires parties to do and the means by which the covenant is formed.

Related terms:

breach of contract

promissory note

warranty

[Last updated in June of 2020 by the Wex Definitions Team]