What is the difference between a covenant and a contract?

A covenant and a contract are both legally binding agreements between two or more parties. However, there are some key differences between the two. A contract is an agreement between two or more entities, in which one (or all) of the parties promises to do something in exchange for something else. A contract can take many forms, such as a written agreement or an oral agreement. For a contract to be enforced in the state of Arizona, the contract must meet certain criteria, such as the parties must be competent and the subject of the agreement must be lawful. A covenant is an agreement between two or more parties that establishes a promise or an obligation. A covenant is similar to a contract in that a promise is made and all parties must abide by the agreement. However, unlike a contract, a covenant does not require all of the same criteria to be met. It is not necessary to have an actual writing or an exchange of consideration in order for a covenant to be valid and binding in the state of Arizona. In summary, a contract is a legally binding agreement where a promise is made in exchange for something else, whereas a covenant is an agreement between two or more parties that establishes an obligation or promise without the need for exchange of consideration.

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