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 developers applied to the Town to modify the Restrictive Covenant in 2010 and again in 2013, to allow for rental units as well as condominium units, on the ground that the Restrictive Covenant rendered the waterfront project economically unfeasible in the wake of the 2008 stock market crash, but the Town refused.
The starting point is that restrictive covenants are unenforceable as a restraint of trade.
So restrictive covenants encouraged these business owners into entrepreneurship.
If you don't, the old agreements containing restrictive covenants could be questionable and unenforceable in court.
BDO Siedman endorsed a three part test for enforcement of restrictive covenants: A restrictive covenant must be no greater in scope than required for protection of the legitimate interest of the employer, not impose undue hardship on the employee, and not be injurious to the public.
If a homeowner's future use of a property will cause a breach of the restrictive covenants imposed upon the land, such as the construction of an extension, it is safest to assume that the restrictive covenants are still enforceable.
In George Wimpey, Bristol and Gloucestershire Housing Association, both the national housebuilder and the housing association applied to the Land Tribunal to have a restrictive covenant discharged which prevented buildings being built on their land.
Alternatively, if you act in a way that a third party says breaches a restrictive covenant, you may be able to say that the covenant is anti-competitive and therefore void.
In addition to the country specific information, this volume also contains three articles covering more general topics, including: a general overview of confidentiality, trade secrets, and other duties and restrictive covenants in a global economy; restrictive covenants and trade secrets issues in Europe; and the challenge of cross-border litigation from an EU perspective.
In order to understand restrictive covenants in the context of environmental and land use law, it is important to know the background and history of the use of "risk-based corrective action" (RBCA).
RESTRICTIVE covenants are important features of many property transactions and it is critical that buyers are aware of any that are in place before they complete their purchase.
Courts will not simply rewrite a covenant to what it subjectively considers reasonable, or employers would draft overly broad restrictive covenants and invite the court to sever any unreasonable parts or read down the covenant to what is reasonable.