Skip to main content

Covenant

A covenant is an agreement to do or not do something in the future. Affirmative covenants are acts the agreeing party agrees to do (e.g., purchase insurance within a specified time frame) and negative covenants are acts that the agreeing party agrees not to do (e.g., not to engage in a particular line of business). Covenants often have time limits or timing requirements but can be open ended.