When a contract is executed as a deed, it means that the contract has been signed and witnessed in a particular way that gives it a higher level of legal authority. This is often used for important contracts, such as those related to property or finance.
In order for a contract to be executed as a deed, there are several key requirements that must be met. First, the document must make it clear that it is intended to be a deed. This typically involves using specific language such as « This Deed » at the beginning of the document.
Second, the document must be signed by the parties involved in the presence of witnesses. These witnesses must be independent, meaning that they are not party to the contract themselves. Typically, there will be at least two witnesses who will sign the document and include their name, address, and occupation.
Finally, the document must be delivered and accepted by the parties involved. This means that the signed and witnessed document must be physically given to the parties, and they must agree to be bound by its terms.
So why would someone choose to execute a contract as a deed? There are several reasons. First, it provides a higher level of legal authority. This means that if there is ever a dispute related to the contract, it will be easier to enforce in court.
Second, executing a contract as a deed can provide greater clarity and certainty around its terms. This is particularly important for contracts related to property or finance, where the stakes can be high.
Finally, executing a contract as a deed can provide additional protection against fraud or forgery. The requirement for independent witnesses and physical delivery of the document can make it more difficult for someone to falsify or alter the contract.
Overall, executing a contract as a deed is an important step for any high-stakes contract. By following the specific requirements and taking the time to ensure that all parties understand the implications of executing a deed, you can help ensure that your contract is legally binding and enforceable.