What is a Covenantor?
A covenantor is a party to a covenant, which is a promise or agreement that is legally binding. In other words, a covenantor is someone who makes a promise or agreement and is legally responsible for fulfilling that promise or agreement.
For example, in a lease agreement, the landlord and tenant are both covenantors, as they each make promises to each other (the landlord promises to provide the property and the tenant promises to pay rent). If either party fails to fulfill their obligations under the lease, they may be held liable for breach of contract.
In the context of a loan, the borrower is typically the covenantor, as they promise to repay the loan according to the terms of the loan agreement. The lender is also a party to the loan agreement and has certain rights and obligations under the loan, but they are not considered a covenantor in the same way that the borrower is.
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