breach of covenant

A term used to describe a breach of an express or implied promise or obligation in a contract. The covenant may be a positive or restrictive covenant. Due to the principles of contract law in civil litigation, the breach of covenant comes about by virtue of the existence of a legally binding contract.

Usage: The supplier, having failed to deliver the goods within the contractual time frame, was found to be in breach of covenant in its contract with its customer.

Related Words: contract; positive covenant; agreement; restrictive covenant; breach of contract.