Breach of Covenant: Legal Definition and Key Insights

Definition & Meaning

A breach of covenant occurs when a party violates a specific promise made in a contract. This promise can be either explicit or implied, meaning it is clearly stated or understood based on the context. Breaches can happen through actions taken or by failing to act, depending on the nature of the covenant. Generally, the law assesses a breach by determining if the covenant has been negated or violated in some way.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A landlord agrees not to rent out a property to anyone else while a tenant is leasing it. If the landlord rents it to another tenant during this period, it constitutes a breach of covenant.

Example 2: A homeowner agrees not to build any structures that obstruct a neighbor's view. If they construct a tall fence that blocks the view, this would also be a breach of covenant.

State-by-state differences

Examples of state differences (not exhaustive):

State Key Difference
California Generally allows for specific performance as a remedy for breach.
New York May require proof of damages for certain types of breaches.
Texas Has specific statutes regarding property covenants that may differ from other states.

This is not a complete list. State laws vary and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition Difference
Breach of Contract Failure to fulfill any part of a contract. A breach of covenant is a specific type of breach of contract focused on promises made.
Default Failure to meet an obligation, often in financial contexts. Default typically relates to financial obligations, while a breach of covenant may involve non-financial promises.

What to do if this term applies to you

If you believe a breach of covenant has occurred, consider the following steps:

  • Review the contract to understand the specific covenants involved.
  • Document any evidence of the breach.
  • Notify the other party of the breach and allow them a chance to remedy the situation.
  • If necessary, consult a legal professional for advice or explore US Legal Forms for relevant legal templates to assist you.

Quick facts

  • Typical fees: Varies by attorney and complexity of the case.
  • Jurisdiction: State-specific laws apply.
  • Possible penalties: May include damages or specific performance.

Key takeaways