Affirmative Covenant
Categories: Regulations
A term or condition of a contractual agreement that binds a party by requiring they take a specified action (as opposed to a "negative covenant," which precludes a participant from taking specified actions).
Examples include loan agreements that require borrowers to make periodic interest payments, property leases whereby landlords must perform annual maintenance activity, or wedding vows where one spouse must love, cherish, and obey the other.
Breaching any of these covenants can result in legal action and/or significant financial harm against the offending parties.
