Questions About Contract Restrictions?
Monmouth County Restrictive Covenant Lawyer Explains Contracts
“Restrictive covenants” can be a lot of things. They can be protective measures in business contracts to prevent competitive uses, protecting intellectual properties. Alternatively, they can be a hurdle to overcome for someone developing land that is subject to a restrictive covenant. Real estate restrictive covenants, in deeds or separate orders, place restrictions on use of property. Unless they have an expiration date, restrictive covenants that run with the land continue with future transfers. If you do not consider the language and wording of a deed or draft, you may have unnoticed risks. On the other hand, a restrictive covenant in business contracts place limits on an employee’s ability to compete with a business. In either case, our New Jersey restrictive covenant lawyer can help you reduce surprises and be sure of what you are getting.
At Garland & Mason, L.L.C., we know how to draft and modify restrictive covenants to protect your rights. We can determine if the language of a covenant is too vague to be enforceable. We can also help you with issues you may face from competitive use clauses. Our team will review every detail to make sure you have a clear idea of what a covenant states. Our Manalapan restrictive covenant attorneys can assist you in both business and real estate matters.
What Is a Restrictive Covenant?
Real estate restrictive covenants are different than restrictions in business contract. In real estate, a restrictive covenant is a promise included in a deed, contract or agreement. It legally defines a party’s consent to be knowingly restricted. While restrictive covenants are not illegal, they may hinder and limit your ability to develop land. In these cases, a court may rule that a specific agreement of the covenant to be invalid.
In business contracts, restrictive covenants usually involve a non-compete agreement. These are in place to protect intellectual property that may be valuable to the business. In these cases, what you may give up through the restriction should be equal to the benefits received. For example, if you sign a non-compete restriction with your business, then you may receive compensation as part of the contract. Navigating these agreements can be complicated and overwhelming. Our restrictive covenant lawyer can identify if you can benefit from a considered non-compete agreement.
What Types of Restrictions Could Apply to a Business Contract?
There are many specifics involved in various restrictive covenants. Generally, there are business contract and real estate restrictions. The most common restrictive covenants are found in employment contracts and real estate deeds. If a business has invested heavily in one employee through signing bonuses, training or benefits, then they may utilize a restriction. There may be non-solicitation terms and non-disclosure terms to further protect intellectual or physical assets.
Common examples of restrictive covenants include:
- Non-Compete Agreement. These restrict the activity of a party so that he or she does not compete with another. Employers may utilize a non-compete agreement with specific periods of time and in specific geographical locations.
- Non-Solicitation Agreement. These agreements place restrictions on communications. One party agrees to refrain from soliciting customers or employees of another party.
- Non-Disclosure Agreement. Business and trade secrets protections are found in non-disclosure agreements. A business can use this to safeguard proprietary processes.
- Property Standards. For real estate, this restriction defines things such as what colors residents may use for a coat of paint on a house. Types of fencing allowed, window treatment, limitations on storage or vehicle parking and curb use may also be items in a restrictive covenant.
Signing a Business Contract? Purchasing Property? Call a NJ Restrictive Covenant Lawyer
Questions about restrictive covenants in your real estate purchase? Unsure about your non-compete, solicitation, or disclosure agreement? Restrictive covenants on property can have a significant impact on use and value. Additionally, restrictive covenants in business contracts may not protect your best interests. Whether you are purchasing property for any use or modifying an employment contract, we can help. Our real estate attorney can identify if a restriction is unlawful or unnecessary. Furthermore, our business contract lawyer can give you peace of mind over any modifications or drafts from your employer.
Through a free and confidential initial consultation, we can let you know if we can help with your restrictive covenants. Our Manalapan law firm serves businesses and individuals in Mercer, Monmouth, Ocean, Middlesex and the surrounding counties of New Jersey. Our office is just 15 minutes from the New Jersey Turnpike and the Garden State Parkway. Bring peace of mind to your future. Call Garland & Mason, L.L.C., at (732) 358-2028 or contact us online.