Commentary

1.4 Why deeds are sometimes preferred

BOILERPLATE AND COMMERCIAL CLAUSES vol 4(3)
| Commentary

1.4 Why deeds are sometimes preferred

| Commentary

1.4 Why deeds are sometimes preferred

The main advantages of executing an agreement as a deed are:

  1. (a)

        No need for consideration. Contracts under hand are generally not legally enforceable if consideration does not pass to or from the parties to the contract. Sometimes a nominal consideration (eg £1) is inserted into the contract to ensure that the contract does not fail for want of consideration. Parties sometimes execute their contracts as deeds to avoid uncertainty as to whether consideration has passed.

  2. (b)

        Extended limitation period. In most situations, a party cannot bring an action for

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