Commercial Lawyer West Perth

There are many different types of contracts in commercial law. One type is a deed, these contracts are specifically used when each party will promise to or commitment to do something.

Deeds are often used commercially to indicate the serious nature of a commitment, such as when substantial shared interests are at stake. A deed is usually needed if:

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  • Assigning intellectual property between to companies.
  • When you need to ensure that another party does not disclose confidential information when entering a non-disclosure deed.
  • After a dispute, documenting an agreement that you have reached with the other party.
  • Bank guarantee or letter of credit.
  • Transferring property, like the sale of a house.

What is the difference between an Agreement and a Deed?

In modern contract law the fundamental elements must include:

• Offer and acceptance
• An intention to be legally bound
• Consideration

In an agreement, consideration demonstrates that both parties have accepted and agreed to provide or do something in return for a promise.

However for a deed there is no requirement for consideration for it to be legally binding. The binding nature of a deed means that both parties have already demonstrated their willingness to be bound into the deed agreement.

Common Types of Deeds:

• Deed of termination
• Escrow deed
• Financial guarantee or letter of credit
• Deed pool
• Indemnity deed
• Confidentially deed