BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Restrictive covenants are legally enforceable by the court. Such restrictions are often associated with the “run with the land”, i.e. the covenant is annexed to the land and cannot be separated from it under any circumstances.

Detailed explanation-2: -Definition: In human resources, a restrictive covenant is a clause which limits an employee from seeking placement with his/her ex-employer till a certain time limit after leaving the business/organisation. A restrictive covenant started out as a legal term to govern land owners.

Detailed explanation-3: -When a party enters into a restrictive covenant, he/she agrees to refrain from doing something or from using a property in a certain way that is restricted by the contract. For example, when purchasing real estate, the buyer may agree to use the property for the designated purpose only and not for other purposes.

Detailed explanation-4: -There are two different types of covenant, positive and restrictive. The distinction is important as positive and restrictive covenants affect land in different ways. A positive covenant requires some form of action to be taken e.g. to erect a fence along a boundary.