Why is a covenant restricting business operations until developer approval considered unenforceable?

A covenant that restricts business operations until developer approval is often viewed as unenforceable because it may be too vague. For a covenant to be enforceable, it generally needs to provide clear and specific terms regarding what is being restricted and the conditions under which approval may be granted. If the language surrounding the approval process lacks clarity, it can lead to uncertainty and inconsistency in enforcement. Courts typically uphold the need for precise and definitive terms in property agreements to ensure both parties understand their rights and obligations.

In this context, if the covenant does not specify the criteria for approval or the scope of the restrictions, it could be deemed too vague to enforce. This vagueness can result in subjective interpretations, making it challenging to hold parties accountable or to litigate disputes effectively. Ensuring that a covenant is clear helps maintain the integrity of property agreements and serves to protect the interests of all parties involved.