restrictive covenant
A 'restrictive covenant' is a legal provision that limits actions or uses of property or employment to protect the interests of another party.
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Definition
C1Real Estate
(legal, technical)A legally binding agreement in a property deed that restricts certain activities or uses of the property.
Example
- The restrictive covenant in the deed prohibits the construction of additional buildings on the property.
C1Employment
(legal, technical)A clause in an employment contract that limits an employee's actions, such as working for competitors or disclosing confidential information.
Example
- The restrictive covenant prevents the employee from joining a rival company for two years after leaving the firm.