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, though there are distinctions between them. A contract is an agreement in which both parties have a duty to fulfill the terms of the agreement. A contract will typically outline what each party is expected to do, or not do, and it is enforceable by law. A covenant, however, is slightly different. A covenant is often a promise to another party that it will be kept in perpetuity. It is a binding agreement that is not necessarily meant to be fulfilled in the immediate future, or to be changed in the future. In Florida, if a breach of contract occurs, the innocent party may be able to seek damages. Conversely, if a breach of covenant occurs, the innocent party may have no recourse under the law. This is because covenants are meant to be timeless, and any damage caused by a breach must be quantified. To summarize, the main difference between a covenant and a contract is that a contract is an agreement meant to be fulfilled in the immediate future, and a covenant is a promise to another party to keep it in perpetuity. A breach of contract will typically allow for legal action to be taken, while a breach of covenant may not.

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