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restrictive covenant |
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restrictive covenantIn property law, an agreement acknowledged in a deed or lease that restricts the free use or occupancy of property, such as by forbidding commercial use or certain types of structures. The restrictive covenant is as old as the law of property, being well-established in Roman law. The term is also used in business law to refer to an agreement whereby one party promises not to engage in the same business or a similar business in a particular area for a period of time. |
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While TEI acknowledged the desirability of legislation to clarify the treatment of such amounts, it asserted that the proposed restrictive covenant provisions are overbroad. From a tenant's perspective, the best security is to require a restrictive covenant from the owner that prohibits the owner from leasing space to a potentially competing tenant. He suggests asking for additional salary, increased severance, or payment during the period of the restrictive covenant. |
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restrictive covenant
