restrictive covenant


Also found in: Dictionary, Thesaurus, Legal, Financial, Acronyms, Encyclopedia, Wikipedia.

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 ?
Employers should carefully consider the appropriateness of restrictive covenants when drafting employment contracts.
Hirshberg, the watershed New York Court of Appeals decision on the enforcement of restrictive covenants in employment agreements, courts and practitioners still wrestle with the issue of whether and under what circumstances employees or their employers possess superior rights in client goodwill.
You should not attempt to contact any person likely to have the benefit of a restrictive covenant without having first sought the advice of your solicitor.
In formulating and implementing institutional and engineering controls, a number of important questions should be answered by the environmental and land use lawyer prior to submitting the proposed restrictive covenant.
Buyers must be aware of what restrictive covenants are in place before they complete their purchase to ensure they will not be prevented from using the land for the purpose for which they purchased it.
If the employee was terminated without cause, such as a layoff due to lack of work, had only worked for a short time, or only part-time, it may be unreasonable to impose a restrictive covenant.
Some courts will find consideration for the restrictive covenant in the fact of employment.
In a February 10 letter, TEI expressed concerns about proposed amendments to the Canadian Income Tax Act to revise the tax treatment of restrictive covenants.
The employment agreements contained post-employment restrictive covenants that prohibited Dr.
Modern examples of a restrictive covenant could be, for example, somebody who was considering selling part of an extensive back garden for somebody else to develop.
Overreaching increases the chances that a court will refuse to enforce the restrictive covenant arrived at by the parties.
As the name implies, a restrictive covenant is any agreement which prevents one party from engaging in conduct that he or she would otherwise have the right to engage in.
Full browser ?