Contract Glossary
Covenant
Definition
A covenant is a binding promise in a contract to do something or not do something. Non-compete covenants stop you from working for a competitor. Non-solicitation covenants stop you from poaching clients. They're the promises with teeth.
In Practice
You leave your job at a marketing agency in Chicago. Your employment contract had a restrictive covenant: no working for competing agencies within 50 miles for 12 months. You take a job at a rival agency 30 miles away. Your former employer sues to enforce the covenant, and in Illinois, courts will likely uphold it if the scope is reasonable. You might be forced to leave the new job or face damages.
Common in these contract types
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