Define: Contract By Deed

A contract by deed, also known as a deed contract or deed of contract, is a legal agreement that is executed by formal written instrument known as a deed. Unlike contracts that can be made orally or in writing, a contract by deed requires certain formalities to be valid and enforceable, such as being signed, sealed, and delivered by the parties involved. Contracts by deed are often used for significant transactions, such as real estate transactions, mortgages, and large commercial agreements, where parties want to ensure the enforceability and permanence of the agreement. Additionally, contracts by deed may have a longer statute of limitations for enforcement compared to ordinary contracts.

Also called a ‘speciality contract’. This meta of contract takes the form of a deed (see: Deed), and therefore imposes greater legal obligations on the signatories than a simple contract. For example, in most cases claims for Damages against a contract by deed can be entered up to 12 years from the date of coming into effect; this term is 6 years in the case of a simple Contract underhand. Contracts by deed have historically been authenticated using a seal; however, this has become something of a formality recently. In any event, many contractees don’t have private seals. In many cases, the fact that the contract is to be treated as a deed is indicated by the form of words of the contract. For example, the Law of property miscellaneous provisions act (1989) indicates that a contract will be treated as a deed if it is clear that that is the intent of the signatories. Land transfers should contain the phrase ‘signed as deed’.

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This glossary post was last updated: 29th March, 2024.