Legal Definitions - lien of a covenant

Definition: The beginning portion of a covenant that states the names of the parties and the character of the covenant.

Example: In a real estate contract, the lien of a covenant would be the section that identifies the buyer and seller, and outlines the terms of the agreement, such as the purchase price and any contingencies.

This definition is important because it helps to establish the legal basis for the agreement and ensures that both parties understand their obligations. By including a lien of a covenant in a contract, it provides a clear record of the terms of the agreement and can be used as evidence in court if necessary.