Maryland Covenant Not to Sue
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How to fill out Covenant Not To Sue?
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FAQ
Are discriminatory restrictive covenants illegal? Generally, yes. Since the United States Supreme Court's 1948 decision in the case Shelley v. Kraemer, restrictive covenants based on race have been unenforceableA contract will not be enforced by a court of law..
For example, covenants that impose racial or religious restrictions after the sale of a property are unenforceable.
West's Annotated Code of MarylandCommercial Law (a) The covenant of good faith and fair dealing shall be implied in an operating agreement unless the operating agreement states that a party may perform a duty or obligation in the party's sole discretion.
Covenants not to compete are disfavored in Maryland and are strictly construed against the employer. For a non-compete agreement to be enforceable, it must be necessary to protect the employer's legitimate business interests and cannot impose undue hardship on the employee.
To be enforceable, a restrictive covenant must be reasonably limited in duration. In some cases, a three year limitation might be acceptable, while, in other cases, one year would be too long. The restriction must also be sufficiently limited in a geographic scope.
Key Takeaways. Restrictive covenants are clauses that prevent, prohibit, restrict, or limit the actions of a person or entity named in a contract. Restrictive covenants are common in real estate transactions and apply to everything from the colors you can paint your house to how many tenants can live in a building.