Covenant/ˈkʌvənənt/ Definition 1 of 2Pro Tip 1/3Binding Promise A covenant in legal terms is a serious commitment with legal consequences if broken. The two companies formed a covenant not to reveal trade secrets. Pro Tip 2/3Contractual Terms Covenants often specify actions parties must take or avoid. The covenant included a clause requiring the owner to repaint the house every five years. Pro Tip 3/3Implicit Trust Entering a covenant implies a high level of mutual trust and is usually well thought out. Farmers made a covenant to share the irrigation system.