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Explains the difference between contracts and deeds.
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.
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