A Restrictive Covenant Is Temporary and Binds Only the Present

question 16

True/False

A restrictive covenant is temporary and binds only the present owner of property.

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Definitions:

Transaction Costs

Expenses incurred when buying or selling goods and services, which may include search and information costs, bargaining costs, and enforcement costs.

Voluntary Exchange

A transaction where parties involved trade goods or services by mutual agreement, without coercion.

Mutual Gain

A situation or outcome in which all parties involved benefit or profit from the arrangement or transaction.

Potential Exchange

The possibility of trading goods, services, or other items of value between parties.