restrictive covenant

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restrictive covenant (ristrik´tiv kuv´ənənt),

n common clause found in a contract for the sale of a dental practice. The seller contracts that he or she will not practice dentistry within a certain time and area. A junior partner may be asked to sign such a covenant to guarantee that he or she will not compete with the partnership for a period after leaving the partnership. Also used in an employment situation.
References in periodicals archive ?
Mr Kearns said he set the business up to cater for a growing demand for confidential investigations into theft, fraud, false absenteeism and employment issues such as breach of contract and restricted covenants.
It had to pay Downing the cash because it owns the Port of Liverpool Building, which benefits from restricted covenants dictating how high neighbouring buildings can be built.
It had to pay Downing the cash because it owns the Port of Liverpool Building which benefits from restricted covenants dictating how high neighbouring buildings can be built.
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