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restrictive covenant

   Also found in: Legal, Financial, Encyclopedia, Wikipedia 0.03 sec.
restrictive covenant (ristrik´tiv kuv´nnt),
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.
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