(With acknowledgements to Mondaq).
Some of the key differences between deeds and agreements include:
- An agreement requires consideration to be valid. A deed does not require consideration.
- Agreements are more flexible in form, and can be construed from multiple documents, while a deed must be in writing, signed and witnessed, with some written indication that it is intended to be a deed.
- Actions for breach of an agreement must be brought within six years of the agreement, actions for breach of a deed may be brought within 12 years.
- A deed must be witnessed by a third party to be valid, whilst an agreement does not.
- Deeds will become enforceable as deeds once they are delivered to the other party, whilst agreements must only be executed by both parties to be enforceable.