Covenants and undertaking cs professional Drafting short notes
„Covenants and undertaking?.
Ans.) A Covenant is a formal agreement between parties that is legally binding. It may be a formal promise to pay more regularly to a charity, trust etc. The word „Undertaking? means „make oneself responsible? for doing something a work or task. It amounts to a promise or guarantee. For example, an undertaking that loan would be repaid or to respect the decision between the parties. A Covenant clause includes undertakings also. Generally a covenant is stated first, followed by undertakings and sometimes, covenants and undertakings are joined together in the following manner:- “The parties hereto hereby manually agree with each other as follows.”