Restrictive Covenant Law and Legal Definition
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:
- is no greater than is required for the protection of the employer,
- does not impose undue hardship on the employee, and
- is not injurious to the public.
Legal Definition list
- Restrictions on Gambling [Aviation Law]
- Restriction [Patent]
- Restriction Affecting Flight Procedures [Aeronautics and Space]
- Restricted Visibility
- Restricted Transaction [Banks & Banking]
- Restrictive Covenant
- Restrictive Endorsement
- Restrictive Principle of Sovereign Immunity
- Restructured International Loan
- Resulting Power
- Resulting Trust