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 that 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 utilise electronic signatures. The parties signing and witnessing the deeds must be in the same location at the time 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, which would render it non-binding on any involved parties.
More articles can be found at Procurement and Supply Chain Management Made Simple. A look at procurement and supply chain management issues to assist organisations and people in increasing the quality, efficiency, and effectiveness in the supply of their products and services to customers' delight. ©️ Procurement and Supply Chain Management Made Simple. All rights reserved.
