Written by attorneys · grounded in primary & secondary sources — see below
A contractual obligation that requires one party to refrain from performing a specified act. The nature of the burden imposed determines whether a covenant qualifies as negative rather than affirmative.
Sources & Authorities
How it applies
Common Examples
3
Subdivision Rental Restriction
Elena purchased a lot in a new subdivision from Summit Development LLC and signed a recorded agreement promising never to operate any short-term rental business on the property. Two years later Elena listed the home on a vacation rental platform. Summit and neighboring owners sought an order barring the rentals because the promise imposed a duty of forbearance.
Conservation Buffer Zone
Northern Wind LLC agreed in writing with rancher Casey to refrain from constructing turbines or related infrastructure inside a 500-acre buffer zone reserved to protect scenic views essential to Casey's eco-tourism business. Facing project deadlines, Northern Wind began grading roads inside the buffer zone. Casey sued for an order halting further work within the restricted area.
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Product Marketing Forbearance
Aluminum Company of America contracted with Essex Group to supply a specialized product and included a promise that Essex would not market any competing or similar product during and after the contract term. When competitors introduced substitute oils, Essex developed and sold its own similar product. Aluminum Company sought to enforce the promise against the new competing sales.
Aluminum Company of America v. Essex Group, Inc.499 F. Supp. 53 (W.D. Pa. 1980)
Common questions
Frequently Asked
3
How does a negative covenant differ from an affirmative covenant?+
The nature of the burden determines the classification. A negative covenant requires the covenantor to refrain from doing something. An affirmative covenant instead requires the covenantor to perform an act such as paying money or supplying goods.
Supporting sources
When may a court enforce a negative covenant by injunction rather than damages?+
Courts may grant an injunction to prevent breach of a contractual duty of forbearance when money damages would be inadequate. The duty to refrain from a specified act fits injunctive relief because the order directly prohibits the threatened conduct without requiring ongoing supervision of affirmative performance.
Supporting sources
What is the relationship between a negative covenant and a restrictive covenant in property law?+
A restrictive covenant is a negative covenant that limits permissible uses of land. When the burden runs with the land the restriction qualifies as a servitude enforceable against successors who take with notice.
Supporting sources
499 F. Supp. 53 (W.D. Pa. 1980)Contracts
…own, Kea, similar to Crisco and Spry. The plaintiff sued to enjoin this further competition with its product. Since the express negative covenants did not forbid this competition, the plaintiff argued that the court should imply a negative covenant to forbid it. The court rejected the defendant’s argument that only covenants intended…