Contract vs Deed

Published: January 0001

Pages: 3

BESA Product Code: LC 43

There are three ways in which a legally binding contract can come into existence: oral, written (signed underhand) and written (deeds).
The pragmatic difference is that there are further requirements for the execution of a deed. Also an oral contract although perfectly legally binding in theory is notoriously difficult to prove in practice – adducing evidence as to the terms of an oral contract is not only fraught with difficulty but also a costly and timely process.
The use of a deed does therefore infer that the parties have read and understood its terms so that the executed document is a clear unambiguous and undisputed record of the parties’ intentions at the time of execution.