Further covenants: Overview, definition, and example
What is further covenants?
Further covenants are promises made in a contract that go beyond the main obligations—often to support, complete, or reinforce the deal. They usually appear as a section where the parties agree to take additional steps in the future to make sure the agreement works as intended.
In simple terms, further covenants are like saying, “We’ll do what we’ve promised—and we’ll also do anything else reasonably necessary to make the deal stick.”
Why is further covenants important?
No contract can predict every future scenario. Further covenants help fill the gaps by requiring both parties to cooperate and take reasonable follow-up actions—like signing extra paperwork, assisting with filings, or helping enforce the agreement.
These covenants protect the integrity of the deal and help avoid situations where one side refuses to do something small (but important) just because it wasn’t spelled out word-for-word in the main terms. For example, in business sales, financings, or IP transfers, further covenants are common to ensure smooth post-closing steps.
Understanding further covenants through an example
Let’s say you sell your e-commerce business and transfer the domain name to the buyer. The contract includes all the main terms—purchase price, closing date, etc.—but it also includes a further covenants clause.
After closing, the buyer needs your help contacting a third-party hosting provider to update account ownership. That wasn’t listed as a specific task, but the further covenants clause requires you to cooperate and take “reasonable steps” to complete the transfer.
Thanks to that clause, you’re contractually obligated to assist—even if the step wasn’t listed in detail.
An example of a further covenants clause
Here’s how a further covenants clause might appear in a contract:
“Each party agrees to execute and deliver such further documents and take such further actions as may be reasonably necessary or desirable to carry out the purposes and intent of this Agreement.”
Conclusion
Further covenants are the “follow-through” promises in a contract. They ensure that both parties stay committed—not just to the big-picture terms, but also to the little things that help the deal succeed after signing.
If you're entering into any agreement with ongoing steps—like a sale, partnership, or loan—make sure further covenants are included. They give you a legal way to ask for reasonable cooperation down the line, even after the ink is dry.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.