Document background
A Covenant Deed is commonly used in Hong Kong when parties need to create particularly formal and binding obligations that benefit from the enhanced enforceability and longer limitation period associated with deeds. It's essential for various business and property transactions where simple contracts may not provide sufficient protection or formality. The document must comply with strict execution requirements under Hong Kong's Conveyancing and Property Ordinance, including proper witnessing and sealing where applicable. Common uses include property restrictions, non-compete agreements, declarations of trust, and other significant business or personal obligations. The Covenant Deed's formal nature makes it particularly suitable for important transactions where parties seek additional legal protection and longer enforcement periods than those available under simple contracts.
