Agreement vs Deed UK: What`s the Difference?
When it comes to legal documents in the UK, agreements and deeds are two of the most common terms used. However, there are differences between these two documents that are important to understand before signing on the dotted line.
What is an Agreement?
An agreement, also known as a contract, is a legally binding document that outlines the terms and conditions that two or more parties agree to. Agreements can be either verbal or written, and they often include details about the subject matter, payment terms, and the rights and obligations of each party involved.
In the UK, agreements can be informal or formal. Informal agreements are made between friends or family members, while formal agreements are typically made between businesses or individuals and are often drafted by lawyers.
What is a Deed?
Like an agreement, a deed is also a legal document that outlines the terms and conditions of an agreement between two or more parties. However, a deed is considered to be a more formal legal document than an agreement.
In the UK, certain types of agreements must be created as deeds, such as property transfers, mortgages and land leases. A deed must be signed and witnessed by both parties in order to be legally binding. The parties must also have the intention to create a legal relationship, and the deed must be delivered to the person who is meant to receive it.
Key Differences between Agreements and Deeds
The main difference between agreements and deeds is that a deed is a more formal and binding legal document that requires additional formalities, such as signing and witnessing, to be valid. An agreement, on the other hand, can be informal or formal and does not require the same level of formality.
Another key difference is that a deed can create a legal obligation even if there is no consideration or payment involved, whereas an agreement requires consideration or payment to be legally binding.
Which one to use?
Whether to use an agreement or a deed depends on the specific circumstances of the agreement. If the agreement involves the transfer of property or other types of assets, a deed is often required. For other types of agreements, an informal or formal agreement may be sufficient.
When in doubt, it is always best to seek legal advice to ensure that the appropriate legal document is used.
Conclusion
In summary, agreements and deeds are two types of legal documents that are commonly used in the UK. While both documents are used to outline the terms and conditions of an agreement between two or more parties, a deed is a more formal and binding legal document that requires additional formalities to be valid. Knowing the differences between these two documents is important for anyone who is entering into a legal agreement.