What is defined as an agreement or promise between two parties, often seen in legal contexts?

Prepare for the Michigan State Title Insurance Exam. Enhance your knowledge with multiple choice questions, each with hints and explanations. Get ready to succeed!

A covenant is indeed defined as an agreement or promise between two parties, commonly found in legal contexts. This term is often used in real estate and property law to describe formal, legally binding agreements that impose certain duties or restrictions on the parties involved.

Covenants can be found in various documents such as deeds and leases, where they might stipulate conditions related to property use, maintenance, or other obligations. They serve to provide a framework for the relationship between parties, ensuring that specific actions are enforced or certain behaviors are prohibited.

In contrast, while the terms condition, contract, and clause play roles in legal agreements, they do not capture the specific nature of a covenant. A contract is a broader term that encompasses any agreement enforceable by law and may contain multiple covenants within it. A condition refers to a stipulation that must be met for the contract to be fulfilled, while a clause is a distinct section within a legal document that addresses a particular issue. Therefore, a covenant stands out as a specific form of agreement distinct from these other terms.

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