Words / C / Law

covenant

/ˈkʌvənənt/

B2CEFR level
68/100Rarity: rare
TechnicalRegister

Law noun

A formal, binding promise in a contract or deed.

A restrictive covenant barred building on the land.

Similar: undertaking, pledge

Origin: Latin convenire 'to agree'.

Topic: Contracts in Legal English

Business noun

A binding condition in a loan agreement that the borrower must keep, such as a maximum leverage ratio.

A single quarter of soft sales pushed them within a whisker of breaching the interest-coverage covenant.

Similar: undertaking

Topic: Finance in Business English

Rarity runs from 0 (a word everyone knows) to 100 (almost never seen outside specialist or literary writing). Level is the word's real difficulty on the CEFR scale, from A1 to C2.

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More law words: Contracts