Define: Affirmative Covenant

An affirmative covenant is a legal obligation or promise contained in a contract, deed, or other legal document that requires a party to perform certain actions or meet specific obligations. Unlike negative covenants, which restrict or prohibit certain activities, affirmative covenants require the party to take affirmative steps or engage in specified behaviours. These obligations could include maintaining property in a certain condition, paying taxes or assessments, providing services, or adhering to certain regulations or standards. Affirmative covenants are often found in real estate agreements, homeowners’ association bylaws, and commercial contracts. Failure to fulfil affirmative covenants can result in legal consequences, such as breach of contract or enforcement actions by the other party.

A type of positive contract or promise that will require one party to do something specific, such as a bond covenant that states that the issuer of that bond shall maintain sufficient or adequate levels of insurance or will deliver audited financial statements. Can be compared with negative or restrictive covenants that require a party not to do something.

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This glossary post was last updated: 29th March 2024.