Deed of Covenant
Our Deed of Covenant template:
- Expert-UK-solicitor drafted
- Easy to edit and quick to complete
- Use when lending equipment for evaluation or where one is required by a lease
- Can be completed within a few minutes
How Does It Work?
- 1. Download
- 2. Edit
- 3. Print
- 4. Sign
Our Deed of Covenant template is for use where one party is making a promise to the other to do something. This might be for a variety of situations which are quite different. We have tried to cover some of the most common situations with our template, but cannot guarantee it covers everything. However, as with all of our templates, they are easily adaptable to your own unique situation without much trouble.
This Deed of Covenant template comes in two different versions (but you only pay for one) so it covers various options, so it is appropriate:
- if a supplier is lending a machine to a potential buyer in order to have them evaluate whether to place a large order for such machines (for example); or
- in the context of conveyancing of leasehold property, where needed in order to ensure a purchaser of a long lease agrees to pay any service charges that may be levied against a property for such things as paying for the repair and maintenance of common areas.
You can download the version that you need and then follow the relevant section of this guide: either (a) the Deed of Covenant for the Loan of a Machine (see section A below) or (b) the Deed of Covenant for a Lease (click on this link and scroll down to the guide section). If you need the deed of covenant to cover something else, then use the Deed of Covenant for the Loan of a Machine and adapt it.
If you are interested in how such deeds have been used in the past, here’s a quick history lesson.
Guide to our Deed of Covenant template
Below you can read a preview of the main parts of the guide to the Deed of Covenant for the Loan of a Machine. If you would like to preview the guide to the Deed of Covenant for a Lease, then please click here and scroll down to the section about the guide.
Clauses in this Deed of Covenant
Party clauses – You will need to insert the names and addresses of party 1 (the Donee) and party 2 (the Donor) and, where they are companies, the company number and country of incorporation.
(A) Fill in the type of business the Donor runs.
(B) This sets out the purpose of the deed: in this case that the Donee is borrowing some goods from the Donor temporarily in order to evaluate whether they want to place an order for them with the Donor. If you are using the deed for something else, then alter this clause as need be.
(C) This states that the machine being loaned comes with certain conditions. If you are using the deed of covenant for something else, then alter this clause as need be.
Numbered clauses in the Deed of Covenant
This clause defines the main terms used in the agreement.
- Goods – Fill in the description of the goods you are lending.
- Group – You need this if the company borrowing the goods is part of a group.
- Purpose – This states the purpose of the goods the other party is borrowing.
2. The Donor’s Covenants
This clause deals with the loan of the machine and associated assistance from the Donor about how it works, etc. Fill in the details in clause 2.1.1 about how many samples of the machine are being lent and whether they are being delivered by the Donor to the Donee’s premises or collected by the Donee from the Donor’s premises. If you are using the deed of covenant for something else, then alter this clause as need be.
3. The Covenants of the Donee
This clause states that the Donee will take good care of the machine and not misuse it, etc. So this means the borrower will only use it for the purpose for which it is being lent. If you are using the deed of covenant for something else, then alter this clause as need be.
(The template includes a few other minor clauses, such as one about the law of the contract. We did not feel any of them sufficiently important to comment on them here.)
The guide contains all the details you need to sign the deed validly.