The following Commercial Q&A provides comprehensive and up to date legal information covering:
The requirements of a deed are set out under section 1 of the Law of Property (Miscellaneous Provisions) Act 1989 (LP(MP)A 1989). To be a deed, an instrument must:
be in writing
make it clear on its face that it is intended to be a deed
must be validly executed as a deed by the parties (or by persons authorised to execute it in the name or on behalf of the parties), and
be delivered as a deed
Deeds must be delivered in order to take effect. Note that ‘delivery’ does not mean physical delivery. It is a common law concept meaning that the party signing the document as a deed must by words or conduct expressly or impliedly acknowledge their intention to immediately and unconditionally be bound by the provisions contained in it.
See Practice Note: Executing documents—deeds and simple contracts.
Under the Companies Act 2006 (CA 2006), a document is validly executed by a company by the affixing of its common seal, or if it is signed on behalf of the company by two authorised signatories or a director of the company in the presence of a witness who attests to the signature.
See Practice Notes: Deeds and Execution formalities—companies.
Whether a company can grant a power of attorney will depend on its constitution or governing document.
A company incorporated under CA 2006 will
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The Standard Conditions of Sale (SCS), currently in their 5th edition (2018 revision), are a set of standard conditions which are commonly incorporated into contracts for the sale of residential property. The Standard Commercial Property Conditions (Third Edition—2018 Revision) (SCPC) are used for
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