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Covenantor

   Also found in: Dictionary/thesaurus, Medical, Financial, Encyclopedia, Wikipedia, Hutchinson 0.01 sec.

COVENANTOR. One who becomes bound to perform a covenant.
     2. To become a covenantor a person must be sui juris, and intend, at the time of becoming bound, to covenant to perform some act mentioned in the covenant. He can be discharged from his covenant by performance, or, by the act of the covenantee, as the non-performance of a condition precedent, a release, or a rescission of the contract.



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This latter scenario considers the probability of the covenantor competing, along with the potential financial impact on the business from competition.
Avoiding sec. 280G sanctions: valuation of covenants not to compete by Ginocchio, Paul L. / The Tax Adviser
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