Q&As

Can a deed be effective as a deed where one party signs as a deed (all deed execution formalities are observed) but the other party signs ‘under hand’, like a standard contract? In particular, if the party signing ‘under hand’ has no obligations under the agreement and is purely a beneficiary of the agreement.

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Published by a ³ÉÈËÓ°Òô Commercial expert
Published on: 25 May 2023
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A deed may be required by legislation (for example, for powers of attorney, section 1(1) of the Powers of Attorney Act 1971, leases and transfers of land (sections 51(1) and 52(1) of the Law of Property Act 1925 etc).

For an instrument to be a valid deed, it must comply with certain formalities comprising both statutory and common law principles. The formalities required will depend on the nature of the document and the executing parties. See Practice Note: How to execute a deed.

Unlike simple contracts, deeds are enforceable despite a lack of consideration.

Deeds are also therefore sometimes used in situations, eg where:

  1. •

    there is no consideration being given in exchange for the contractual promise or there are doubts as to the adequacy of the consideration

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