A restrictive covenant is a clause in a deed to real property that the buyer (grantee) will be limited as to the future use of the property. All restrictive covenants based on race are illegal.
A restrictive covenant is also used in employment contracts or financing documents. Such a restrictive covenant imposes an obligation an employee or director preventing the employee/director from doing something during or after his employment has terminated. This usually deals with engaging in competitive businesses or poaching staff or customers.
A noncompetition covenant is reasonable if the restraint:
