The obligation in a contract to do something. A commitment to refrain from doing something is called a Negative Covenant. For example, the obligation to obtain life insurance on key employees is a covenant, and the responsibility to not deviate from the budget approved by investors is a negative covenant.
The obligation in a contract to do something. A commitment to refrain from doing something is called a Negative Covenant. For example, the obligation to obtain life insurance on key employees is a covenant, and the responsibility to not deviate from the budget approved by investors is a negative covenant.
