In a deed, a grantee may agree to do something or refrain from doing certain acts. This agreement will become a binding contract between the grantor and the grantee. An example would be an agreement to maintain fences on the property or that the property will only be used for residential purposes. This kind of covenant is binding, not only between the grantor and the grantee, but also runs with the land. This means that anyone acquiring the land from the grantee is also bound by the covenant of the grantee. A covenant that provides that the grantee will refrain from certain conduct is called a restrictive or protective covenant. For example, there may be a covenant that no mobile home shall be placed on the property.
A restrictive or protective covenant may limit the kind of structure that can be placed on the property and may also restrict the use that can be made of the land. For example, when a tract of land is developed for individual lots and homes to be built, it is common to use the same restrictive covenants in all of the deeds in order to cause uniform restrictions and patterns on the property. For example, the developer may provide that no home may be built under a certain number of square feet. Any person acquiring a lot within the tract will be bound by the restrictions if they are placed in the deed or a prior recorded deed. Also, these restrictive covenants may be placed in a document at the outset of the development entitled "Restrictive Covenants," and list all the restrictive covenants that will apply to the tracts of land being developed. Any subsequent deed can then refer back to the book and page number where these restrictive covenants are recorded. Any person owning one of the lots in the tract may bring suit against another lot owner to enforce the restrictive covenants. However, restrictive covenants may be abandoned or not enforceable by estoppel if the restrictive covenants are violated openly for a sufficient period of time in order for a Court to declare that the restriction has been abandoned.
Restrictive Covenants In Contracts In Illinois
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Restrictive covenants in Illinois limit postemployment competition. This outline is intended to aid those needing to draft, enforce or challenge restrictive covenants.This agreement is also called a "covenant not to compete" or a "restrictive covenant. An employer can enforce restrictive covenants post-termination if the reason for the termination was related to the employee's job performance. Restrictive covenants generally fall into three categories: non-solicitation clauses; non-compete clauses; and confidentiality provisions. Instead, employers should ensure that their restrictive covenants are carefully drafted in the first place and are used only as needed and when reasonable. Illinois will now require employers to provide a written copy of the restrictive covenant agreement to the employee 14 days prior to employment commencing. Under Illinois law, covenants not to compete are generally disfavored and held to a high standard. 2008), it is well settled in Illinois that continued employment is adequate consideration to support a restrictive covenant agreement (i.e. What Restrictive Covenants Are Enforceable for Illinois Businesses?