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.
Salt Lake Utah Agreement Creating Restrictive Covenants
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FAQ
Duration: Post-termination restrictive covenants that exceed 6 months are unlikely to be enforceable unless the employee is in a very senior, executive or key business role (see further under Question 6).
As restrictive covenants don't 'expire', if they are breached the person with the benefit of the covenant can enforce them against you.
It is possible to find non-compete loopholes in certain circumstances in order to void a non-compete contract. For instance, if you can prove that you never signed the contract, or if you can demonstrate that the contract is against the public interest, you may be able to void the agreement.
If the clause is enforceable and you're in breach, there are various sanctions that your ex-employer can seek. These include: An injunction: This would stop you from carrying out your new role and you may also face payment of the other party's legal costs.
Under the most recently amended section 34-51-201 of the Utah Code, an employer and an employee may not enter into a post-employment restrictive covenant for a period of more than one year from the day on which the employee is no longer employed by the employer. This law applies to non-compete agreements entered into
Under current law, non-compete agreements in Utah must be no longer than one year, limited to a reasonable geographic area, and intended to protect only legitimate business interests of the employer.
To be enforceable a restrictive covenant must firstly touch and concern or somehow benefit other land, and the benefit must also have been intended to run with that benefitting land. The covenant cannot merely be a covenant of personal benefit to the original contracting party.
Providing restrictive covenants are not void for restraint of trade and required to protect legitimate business interests, they will be viewed as legally binding.
Utah courts will only enforce non-compete agreements if they are narrowly tailored "to protect the legitimate interests of the employer" (Robbins v. Finlay, 645 P.
If the restrictive covenant is in respect of a flat, you generally have the right under the terms of the lease to ask the landlord to enforce covenants against other flat owners. If you own the benefit of a restrictive covenant, then you can bring legal action yourself to enforce it.