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restrictive covenant


Definitions of restrictive covenant


a clause in the title deed of a piece of real estate that restricts the use of land (eg a clause that states that the property may not be used for certain activities)

The deed contained a restrictive covenant which provided that the land could never be used for commercial purposes.


a promise not to do something that restricts the way that a person or entity can act for a specific period of time. A restrictive covenant is usually a clause in a contract which prohibits an employee from competing with their ex-employer after the employee has parted company with the business, or prevents the ex-employee from soliciting customers of the business by using knowledge of those customers gained during their earlier employment.

The employment contract included a number of restrictive covenants, limiting her activities upon termination of her employment.