Buying Commercial Property · glossary
A buyer's promise to its seller to keep a covenant and to repay the seller's loss if it is broken. It binds only the company that gave it, so each seller takes a fresh one from its buyer. Fellgate gives Holmfield one in panel 11 of the transfer. Contract, Annex 1, panel 11 · Chapter 4 · see Positive covenant
Explained in Chapter 4, The Covenant, of Buying Commercial Property.
Hebble, which gave the covenant, stayed liable on it by contract after it sold the land. So when Hebble sold to Holmfield in 1987, it took an indemnity covenant from Holmfield: a promise to keep the covenant and repay Hebble's loss if it is broken. That promise is a positive covenant (a promise to act or pay). Only a promise not to do something passes with the land, so this one binds Holmfield but not later owners.Read Chapter 4, The Covenant →
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