Gallagher followed the Restatement of Property to hold that even the original covenantor
was released from real covenant liability upon conveying the burdened land to a new owner.
In such a case, if the restraint exceeds the necessity presented by the main purpose of the contract, it is void for two reasons: First, because it oppresses the covenantor
, without any corresponding benefit to the covenantee; and, second, because it tends to a monopoly.
Only a handful of his subjects--the Covenantor
politician, Sir Archibald Johnston of Wariston; the minister, Robert Baillie; the professional soldier, Sir James Turner; and the Highland warrior, Alasdair MacColla--achieved much in the way of fame or notoriety.
This latter scenario considers the probability of the covenantor
competing, along with the potential financial impact on the business from competition.
59) According to long-established tax law principles, such transfers could be deducted from the income of the covenantor
and added to that of the covenantee.