Legal documents are vital in
establishing formal relationships between parties. These instruments outline
the precise terms and conditions that regulate organisational transactions,
partnerships, or other agreements, ensuring that all parties are completely
informed of their rights and responsibilities. In certain instances, signatures
from one or both parties may be necessary to validate these documents.
A typical situation
requiring signatures from both parties occurs when the agreement's terms
explicitly mandate that both must endorse the document to be considered
legitimate. This requirement confirms that all parties know and consent to the
stipulated terms. By necessitating signatures from both sides, the document
attains legal enforceability, holding each party accountable for meeting their
respective commitments.
It is crucial to recognise
that the individuals signing a legal agreement, whether a contract, framework
agreement, lease agreement, or covenant deed, affirm their comprehension of
their rights and responsibilities under the agreement. When signing on behalf
of an organisation, the organisation asserts that the signatory has the
authority to execute the document legally. This ensures that the agreement is
binding and that all parties know their commitments.
The Purpose of Two
Signatories On Legal Documents
Although there is no legal
compulsion to do so, except for specific types of Deeds, the parties to an
agreement may stipulate that two signatures are required from each party.
Obtaining two signatures from a party can safeguard against potential fraud or
misrepresentation. This dual-signature requirement diminishes the risk of one
party being able to forge or alter the contract, as both must participate in
the signing process. Such a measure enhances protection against future
complications that may arise from fraudulent actions, thereby reinforcing the
integrity of the agreement.
A scenario in which two
signatures from the same entity may be necessary arises when a third party
executes a document on behalf of an organisation. In such instances, it is
customary for both the third party and an officially designated organisation
representative to sign the document. This dual-signature requirement confirms
the organisation's consent to the terms outlined in the agreement, thereby
ensuring that the organisation is legally bound by the contract rather than
solely the individual acting on its behalf.
The practice of requiring
signatures from each party, or multiple signatures from one or both parties, to
formalise a legal agreement, framework agreement, lease agreement, or deed of
covenant is a standard procedure that protects the interests of all involved.
Mandating participation from both parties in the signing process significantly
diminishes the likelihood of misunderstandings, fraudulent activities, or
misrepresentation. This approach promotes a more secure and transparent
contractual relationship for all parties concerned.
Legal Requirements for The
Validation of Deeds
Deeds may be executed among
individuals, corporations, unincorporated entities, or any combination thereof.
They can also be established at various governmental levels and between these
entities and other organisations. Both governmental bodies, public institutions,
and corporations, whether publicly or privately owned, and incorporated and
unincorporated associations, can grant or receive deeds. The term
"Party" is used comprehensively to encompass any individual,
organisation, or entity that creates or is assigned a right or assumes an
obligation under a deed.
The primary requirement for
a deed is that it complies with the legislative stipulations concerning its
form. A deed must be documented in writing, as oral deeds are not acknowledged
and must be signed by the individual creating it. Similar to simple contracts,
physical signatures are not mandatory if the document adheres to the relevant
provisions of the Electronic Communications Act 2000.
A corporation is also
permitted to execute deeds, typically achieved by affixing the company’s seal
or through the signatures of two directors or a director and secretary acting
on behalf of the company. The second stipulation is that the signature must be
attested or 'witnessed.' Consequently, a deed must be witnessed by an
individual who is not a party to the deed. While not obligatory, it is common
practice for the witness to "attest" the document by signing it and
including the date and a statement confirming their role as a witness.
The attestation ensures that
the individual relying on the deed must substantiate the validity of the
signature. Additionally, it aids in establishing the authenticity of the
signature in the event of a dispute regarding the deed's origin. No other form of
evidence, except in the context of wills, falls under this category. In a
disagreement, the court may consider a witness affidavit to ascertain the
signature's authenticity.
The Implications of
Electronic Signatures for Deeds
An electronic signature can
effectively execute a deed, provided the individual affixing the signature
intends to validate the document and adheres to the necessary execution
formalities. The legal stipulation requiring a deed to be signed "in the
presence of a witness" mandates that the witness must be physically
present.
This requirement holds even
when both the signatory and the witness use electronic signatures. The parties
signing and witnessing the deeds must be in the same location when the
electronic signatures are applied to the deed. A deed that fails to meet the
appropriate execution formalities may still be recognised as a simple contract,
provided it is backed by adequate consideration.
However, there are instances
where certain deeds do not involve sufficient consideration, rendering this
alternative argument inapplicable. Therefore, the absence of proper execution
could jeopardise the deed's validity. It is essential for all legal documents,
including deeds, to incorporate the correct execution provisions and to ensure
full compliance with these requirements. Failure to do so may result in the
document or deed being deemed invalid, rendering it non-binding on any involved
parties.
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