We use cookies to improve security, personalize the user experience,
enhance our marketing activities (including cooperating with our marketing partners) and for other
business use.
Click "here" to read our Cookie Policy.
By clicking "Accept" you agree to the use of cookies. Read less
A dependant covenant is a type of agreement that requires one party to fulfill a specific action or condition before the other party is obligated to perform their part of the agreement. Essentially, the performance of one party is contingent upon the prior action of the other. For example, if a property owner agrees to make repairs only after a tenant pays rent, the tenant's payment is the act that triggers the owner's obligation to repair.
Table of content
Legal Use & context
Dependant covenants are commonly used in real estate and contract law. They play a significant role in agreements related to property transactions, leases, and construction contracts. Understanding these covenants is essential for parties entering into contracts, as they outline the conditions under which obligations are triggered. Users can manage these agreements through legal templates available on platforms like US Legal Forms, ensuring they comply with relevant laws.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A landlord agrees to provide heating in an apartment only after the tenant pays the first month's rent. The tenant's payment is the act that triggers the landlord's obligation to provide heat.
Example 2: A contractor agrees to start construction on a house once the homeowner secures financing. The homeowner's securing of financing is the condition that activates the contractor's duty to begin work. (hypothetical example)
State-by-state differences
State
Notes
California
Dependant covenants are commonly enforced in lease agreements, requiring clear performance conditions.
New York
Specific performance of dependant covenants can be sought in court if one party fails to act.
Texas
Texas law recognizes dependant covenants in property transactions, emphasizing the need for clear contract terms.
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
Independent Covenant
A covenant where both parties are obligated to perform their duties regardless of the other's actions.
Unlike dependant covenants, independent covenants do not rely on the performance of another party.
Condition Precedent
A condition that must be met before a party's obligation arises.
Conditions precedent may not always be in the form of a covenant, whereas dependant covenants specifically involve mutual obligations.
Common misunderstandings
What to do if this term applies to you
If you find yourself in a situation involving a dependant covenant, it's important to review the agreement carefully. Ensure that the conditions for performance are clearly outlined. If you're unsure about your rights or obligations, consider using US Legal Forms for templates that can help you draft or review your agreements. For complex situations, consulting a legal professional may be necessary to protect your interests.
Find the legal form that fits your case
Browse our library of 85,000+ state-specific legal templates.