Contract Glossary
Covenant Not to Sue
Definition
A promise by one party not to sue the other for existing or potential claims. Unlike a release (which wipes out the claim entirely), a covenant not to sue leaves the claim alive, you just promise not to act on it.
In Practice
After a contract dispute, you and the other party settle and sign a covenant not to sue over the disputed work. If you later break that promise and sue anyway, they can use the covenant as a defense. Covenants not to sue are common in settlement agreements, IP disputes, and partnership breakups.
Common in these contract types
Related terms
Related contract clauses
Frequently asked questions
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