When will a negative covenant be enforceable?
Manitoba, Canada
The following excerpt is from M.E.P. Environmental Products Ltd. v. Hi Performance Coatings Company Limited et al., 2006 MBQB 119 (CanLII):
When considering the enforcement of negative covenants, particularly where a party seeking to enforce the covenant has paid for the right to enforce it or otherwise given valuable consideration for this right, such covenants ought to be enforced even if damages might be an adequate remedy if the covenant is prima facie reasonable. See Miller v. Toews, [1990] M.J. No. 643 (Man. C.A.).
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