When entering into a legal agreement, it is important to understand the various ways that such agreements can be executed. One term that often comes up in legal documents is “executed as a deed”. But what exactly does this mean, and why is it important?
In simple terms, executing a document as a deed means that it is being signed and witnessed in a specific way that gives it certain legal benefits. The term “deed” refers to a legal document that transfers ownership of property or creates a binding obligation between parties. By executing a document as a deed, it is given a higher level of legal validity and enforceability.
So why might you choose to execute a document as a deed? There are several reasons. One common reason is that executing a document as a deed may give it a longer statute of limitations than a regular contract. In some jurisdictions, a contract may have a statute of limitations of just a few years, while a deed may be valid for up to 20 years or more. This can be particularly important for contracts that involve ongoing obligations or payments.
Another advantage of executing a document as a deed is that it may make it easier to enforce in court. Because a deed is considered to be a more formal and binding type of legal document, courts may be more likely to uphold it and award damages if one party breaches the agreement. This can provide greater peace of mind for both parties, as they can be confident that the terms of the agreement are legally enforceable.
It is worth noting, however, that executing a document as a deed does require some additional steps compared to executing a regular contract. Specifically, the document must be signed in the presence of a witness (or witnesses) who can attest to the fact that the signing party (or parties) understood and agreed to the terms of the agreement. The witness(es) must also sign the document and include their address and occupation.
In summary, if you are entering into a legal agreement, it is important to understand the different ways that it can be executed. Choosing to execute a document as a deed can provide significant legal benefits and protections, but it does require some additional steps compared to a regular contract. As always, it is a good idea to consult with a qualified legal professional to determine the best approach for your specific situation.