Breach of covenant CASES
In English law, a breach of covenant refers to the failure of a party to comply with a legally binding promise or obligation within contracts, particularly leases or property agreements.
Definition and Principles
Covenants are enforceable promises often found in property leases or land contracts. Breaching these terms may trigger remedies including damages, injunctions, or termination of agreements.
Common Examples
- Tenant failing to pay rent or maintain premises.
- Landowners violating restrictive covenants by altering property without permission.
- Failure to adhere to covenants restricting specific land use.
Legal Implications
- May result in damages, specific performance, injunctions, or lease termination.
- Covenants may run with the land, binding successive property owners.
Practical Importance
Recognising breaches of covenant helps protect property interests, enforce rights, and manage contractual obligations effectively in property and commercial law.
Home » Breach of covenant
A developer breached a restrictive covenant by building more houses than permitted by the contract. The landowner suffered no financial loss. The Court of Appeal awarded only nominal damages, holding that damages for breach of contract are compensatory, not restitutionary. Facts The plaintiffs, Surrey County Council and another council, sold two plots of land to the defendant developers, Bredero Homes Ltd. The sale incorporated restrictive covenants in the deeds. One covenant stipulated that the defendants would not develop a plot (the ‘red land’) with more than 72 houses. The defendants subsequently obtained a new planning permission and built 77 houses
