Asked by Rahaf Aldabain on Jun 14, 2024
Verified
Restrictive covenants are strictly construed against the party asserting their applicability.
Restrictive Covenants
Clauses within a contract that limit the actions of the parties, commonly used in employment and real estate agreements to restrict competition or usage.
- Understand the consequences of restrictive covenants on property transactions and ownership.
Verified Answer
KA
Kathryn AthanasakosJun 17, 2024
Final Answer :
True
Explanation :
Restrictive covenants, such as non-compete or non-disclosure agreements, are often interpreted narrowly by courts to ensure they do not unfairly restrict an individual's ability to work or compete in their industry. This means that any ambiguity in the language of the covenant will typically be resolved against the party seeking to enforce it, to avoid imposing undue limitations on the other party.
Learning Objectives
- Understand the consequences of restrictive covenants on property transactions and ownership.
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