What is the difference between a covenant and a contract?

A covenant and a contract are both legally-binding agreements, but there is a difference between the two. A covenant is an agreement between two or more parties that promise an action or a refraining from action. It is often used in real estate as a form of agreement between two parties that creates certain rights and responsibilities. A contract, on the other hand, is a legally-binding agreement between two or more parties that creates an obligation to do something. Unlike a covenant, a contract has more specific terms and conditions, such as an agreement to purchase goods or services. In Texas, both covenants and contracts are legally binding, and courts have the power to enforce them. However, the differences between the two means that some contracts may not be enforced by the courts. The most important difference between the two is that in a covenant, the parties are only obligated to act in a certain way, whereas in a contract, there is usually a more specific and binding agreement. Additionally, contracts often include a provision specifying the remedies for breach of the contract, while covenants typically do not. In Texas, there are various laws that regulate contracts and covenants, and each type of agreement must be carefully reviewed to ensure that it meets all applicable legal requirements.

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