Covenants

A covenant, in its most general and historical sense, is a solemn promise to engage in or refrain from a specified action. Under historical English common law, a covenant was distinguished from an ordinary contract by the presence of a seal. Because the presence of a seal indicated an unusual solemnity in the promises made in a covenant, the common law would enforce a covenant even in the absence of consideration. In United States contract law, an implied covenant of good faith is presumed. A covenant is an agreement like a contract. A covenantor makes a promise to a covenantee to perform an action (affirmative covenant in the United States or positive covenant in England and Wales) or to refrain from an action (negative covenant). In real property law, the term real covenants refers to conditions tied to the ownership or use of land. A "covenant running with the land", meeting tests of wording and circumstances laid down in precedent, imposes duties or restrictions upon the use of that land regardless of the owner. A covenant for title that accompanies a deed or title to the property assures the purchaser that the grantor has the ownership rights the deed purports to convey. Non-compete clauses in relation to contract law are also called restrictive covenants. Landlords may seek, and courts may grant forfeiture of leases, such as in leasehold estates for breach of covenant, which, in most jurisdictions, must be relatively severe breaches; however, the covenant to pay rent is one of the more fundamental covenants. The forfeiture of a private home involves interference with social and economic human rights. In the case of leases commuted to a large sum payable at the outset (a premium), this has prompted lobbying for, and government measures forleasehold reform, particularly in the law of ground rents and service charges. Restrictive covenants are somewhat similar to easements and equitable servitude. In the US, the Restatement (Third) of Property merges the concepts into servitudes. Real covenant law in the US has been referred to as an "unspeakable quagmire" by one court.