Week 11 – Covenants, Conditions, and Drafting Considerations
Learning Objectives
1. Define a covenant.
2. Define a condition (condition pprecedent, condition subsequent, condition concurrent).
3. What is a covenant not to compete, and when will it be enforced in NY?
Readings and Course Materials for this week:
Student Name:
Professor:
Course:
Date:
Covenants, Conditions, and Drafting Considerations
1. Define a covenant.
A covenant is a formal, and binding agreement between two or more people. A covenant is a written promise for the performance of individual action. A person agreeing is known as the covenanter, while a covenantee is an individual to whom the promise is made (Benedict, James, page 149-193). The court enforces a covenant, wherein in case of a disagreement, the court intervenes, and the court prohibits specific actions Covenant to govern real property. Covenant governing titles are two types of covenants. Covenant is intended for legal purposes and any activity that lead to the civil rights violation.
2. Define a condition:
A condition is any act that affects the duty to fulfill a promise according to a contract. A contract should go according to the promise, where a contract’s performance can only be affected by the lapse of time. There various types of condition, concurrent, unprecedented, and subsequent
A condition precedent is a condition that exists as a fact, where failure to keep the promise, the promise is liable. For instance, a business person informs a client that the client will receive a discount if the client buys five items (Benedict, James, page 149-193). According to a condition precedent, the five items’ purchase should exist as a fact before the business person becomes liable.
Condition subsequent: When the condition exists, the duty of contract performance ends, or the contract ends when payments to the contract are made.
Condition concurrent: The performance of duty in condition concurrent is contingent upon each party. For the performance to take place, one person has to tender the performance. For instance, one party must complete payments for contract performance to take place.
An exit clause is also known as a termination clause in the terms and conditions of an agreement. The agreement consists of circumstances under which a contract can be terminated. For instance, an agreement can be exited if the party violates any term provided by the contract (Benedict, James, and page 149-193).
3. What is a covenant not to compete, and when will it be enforced in NY?
A non-compete clause is found in an employment contract. In business as an agreement, one party agrees on not working for the other party’s direct competition in a particular time and a specified area. The covenant must attain legal standards to be granted a covenant not to compete by the court. A covenant not to compete protects the interest of the business, sych as customer relationships. A business partner or an employee signs a contract not to compete before a performance (Benedict, James, page 149-193). A covenant not to compete is supported by a consideration, which is a fundamental element of a contract concerning an item of value that the parties agree to exchange.
An expressed condition is a condition provided in an agreement, while an implied condition is a contract provided by the court.
Conduct, termination of a contract without cause, and under appropriate circumstances affect a covenant’s enforceability not to compete.
A legally binding contract is written or made through spoken words Mosberg, (Michael and Patricia Kindregan, page 277-301). A written contract is proved through words, while an oral contra t is proven through the contracting parties’ memory. A writing agreement is the most recommended type of agreement that does not require one to remember.
A statute of fraud is a written contract; for instance, a contract for land sale because the land is sold for five hundred dollars.
Palimony is a division between real property, and a financial asset, such as cohabitation, after a relationship ends. Yes.
In Jack and Diane’s case, the court will enforce alimony because, according to the legal obligation, an agreement can be made before entry into cohabitation or marital agreement. Also, it is a legal obligation for a person to provide financial support after marital separation.
No, because no condition exists as a fact in the contract. Also, in Jack’s death, there will be no reminder for the oral contract.
No. because selling and buying of land is covered under the statute of fraud, which demands a burden of proof to ensure the contract is valid.
Yes, because the contract is legally binding in written form, and the condition exists in facts, which is a will.
Work Cited
Benedict, James L. “Covenant Consent.” A Revised Consent Model for the Transplantation of Face and Upper Limbs: Covenant Consent. Springer, Cham, 2017. 149-193.
Mosberg, Michael A., and Patricia Kindregan. “Ten Practice Tips for Postnuptial Agreements: Drafting Considerations and Formalities.” Family Law Quarterly 52.2 (2018): 277-301.
