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 ?
The Lands Tribunal has power in certain circumstances to modify or discharge restrictive covenants where the original purpose of the covenant has become inappropriate.
Such restrictions may include, but are not limited to, deed restrictions, restrictive covenants or conservation easements.
In the result, the whole restrictive covenant was struck out as unenforceable because of the ambiguity created by the generic word "Metropolitan.
Although the enforceability of a restrictive covenant may be uncertain, an employee will pay a price to find out.
In any event, care should be taken to determine if there is any legislation which would affect the enforcement of restrictive covenants in your state.
This case is contrary to the trend in many jurisdictions to modify or rule restrictive covenants as unenforceable.
335 sets forth the main factor to determine whether a restrictive covenant is enforceable or not: the "legitimate business interest.
There was, however, a restrictive covenant in place which limited its use to a coach depot.
When a director or senior manager quits a company for a competitor, many people still believe there is little they can do about it, even if the leaver had a restrictive covenant in his contract.
On February 27, 2004, the Department of Finance released Legislative Proposals to amend various provisions of the Income Tax Act, including the taxation of amounts received or receivable in respect of granting a restrictive covenant.
From a tenant's perspective, the best security is to require a restrictive covenant from the owner that prohibits the owner from leasing space to a potentially competing tenant.
But, in this instance, the most important restrictive covenant is that no householder can keep a caravan on their land.
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