What are the different types of covenant?

Covenants can be categorized into several types, primarily including positive (affirmative) covenants, which require a party to take specific actions, and negative (restrictive) covenants, which prohibit certain actions. There are also financial covenants, often used in loan agreements, that impose specific financial metrics a borrower must maintain. Additionally, real estate covenants can dictate how property is used or maintained. Each type serves to protect the interests of the parties involved and ensure compliance with agreed-upon standards.