15 October 2009
Under common law system, deed is a special type of binding promise or commitment to do something, with some key features distinct from a normal agreement.
Consideration is required for a contract to be valid and enforceable, but not required for a binding Deed. It is for this reason that arrangements involving one party receiving benefit or promise from someone where it is not giving anything in return may take the form of Deed.
15 October 2009
Special formality and procedural requirements for the execution of deed. Historically the execution of a deed was a very solemn act, and had some special formality and procedural requirements – the deed needed to be sealed, witnessed and delivered to the other party.
More specifically, when an individual is executing a deed, (a) he shall sign on the deed, and (b) his (her) signature shall be attested by a competent person (e.g, a person will full legal competency), and (c) the deed shall be delivered to the counterparty.
When a corporation is executing a deed, the common seal of the corporation shall be affixed on the deed in the presence of two directors, or one director and one company secretary
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