Commercial Lawyer Ellenbrook

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 interests are at stake. A deed is usually needed if:

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

    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