Legal Definitions - restrictive condition

RESTRICTIVE CONDITION

A restrictive condition is a condition in a contract that forbids a party from doing a certain thing. It is a type of negative condition. For example, a tenant may be restricted from subletting leased property. If the tenant violates this condition, they may be in breach of the contract and face consequences.

• A contract between a company and an employee may have a restrictive condition that prohibits the employee from working for a competitor for a certain period of time after leaving the company.
• A lease agreement may have a restrictive condition that prohibits the tenant from making any alterations to the property without the landlord's permission.

These examples illustrate how a restrictive condition can limit the actions of a party in a contract. If the condition is violated, it can result in a breach of contract and legal consequences.