Whether you are an individual or acting on behalf of a limited company, you will most likely have come across legal agreements and deeds during your private or working life. If you have subscribed to a streaming service or signed a contract for business services such as having your office windows cleaned, you will have signed a legal agreement. On the other hand, if you have bought a property, you will have signed a deed at some point. So, how do they differ?

What is a legal agreement?

As we have mentioned, this is a legal document you normally sign for the provision of services. For it to be binding, you need to have an offer and acceptance clearly agreed, an intention that the parties wish to be legally bound by the terms, and consideration or payment for the services. The agreement can be verbal, electronic or written.

What is a deed?

This is a more formal document and often relates to the transfer of rights or property. This can be a deed of transfer, a deed of gift or a deed of assignment. You can find more information and details of the costs involved in having a deed of assignment drawn up by searching online.

When dealing with interests in land, in order to be considered a deed, a document has to be written, clearly titled as a deed with the intention to be treated as such by the parties to it, and executed in a valid manner by the parties under section 1 of the Law of Property (Miscellaneous Provisions) Act 1989)

When a deed is signed, that signature must be witnessed by a third party. This involves a counter signature and the details of the name and address of the witness. The same witness can attest to the identity of both signatories on the deed, but must sign to confirm all signatures separately.

Also, a deed must be delivered to the other party. This is an extra requirement to make the instrument legally binding and does not apply to legal agreements.