You should note that our help is required in verifying execution of documents in the following examples of scenarios: If you are Lending money and there is a Loan Agreement — If the Borrower has not executed properly or it is not the Borrower who has signed in the case of fraud , your recovery of loan money is in jeopardy; Execution of sale contracts — Buyer and Guarantor execution needs to be verified against searches.
Therefore our help is required up front in this respect; Do not always think that in the Lease that the parties who have executed are actually for example in the case of the company , directors of that tenant company. Often tenants make mistakes and the proper parties have not executed.
Execution of deeds and documents
Often more than one director is required to sign. These are only a few examples. Prev Back to Blog Next. Related Articles View All.
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Deeds can also be advantageous even when they are not strictly required by law.
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For example, if only one party under a contract is receiving a real benefit from an agreement, it would be advisable under English law to execute the contract as a deed so that it is not void for lack of consideration. Another potential advantage of deeds is that they have a longer statutory limitation period than contracts: However, a deed requires some additional execution formality beyond a simple signature.
Deeds must be in writing and will typically be executed in the presence of a witness, although in the case of a company a deed may be executed effectively by two directors or a director and the company secretary. Specific wording should also be included above the signature blocks.
Is backdating legal?
Simple contracts and deeds are often executed in counterparts. This means that each party to the contract will sign separate but identical copies of the same document. The signed copies will together form a single binding agreement.
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Simple contracts and deeds typically contain a clause expressly allowing the document to be executed in counterparts. There are often difficulties, especially for larger international contracts, in getting all signatories to a contract together in one room to sign the contract. Furthermore, physically posting the contract between the parties may be prohibitively slow.
To avoid these difficulties, it is possible to sign a contract "virtually". That is, the signature pages are prepared and executed in advance and the signatures are "released" upon mutual agreement, often given by email. However, there has been some controversial English case law suggesting that, in some circumstances, contracts and deeds executed virtually may not be enforceable.
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This guidance should be borne in mind when making arrangements for closings or signings, especially where some parties are looking to sign documents virtually because they are unable to attend the meeting in person.