Legal terminology
Gurumourthi
(Querist) 07 August 2008
This query is : Resolved
What is the difference between Agreement and deed
Guest
(Expert) 07 August 2008
contract: An agreement between two or more parties, especially one that is written and enforceable by law. The writing or document containing such an agreement.
deed: A document sealed as an instrument of bond, contract, or conveyance, especially relating to property.
so a contract is written between two people, a deed is written just by one person.
KANDE VENKATESH GUPTA
(Expert) 07 August 2008
Mr.Guru,
As rightly said by Mr.Kotresh, for an agreement consenses ad-idem between two parties must be there i.e., offerer and acceptor, whereas in case of a deed, it is an instructment signed by one party in favour of the other. There need not be two parties in case of a deed.
Manish Singh
(Expert) 08 August 2008
I differ from the abovesaid opinions.
since in case of sale deed etc, there must be consensus between two parties.
difeerence between them is of technicalities only not in terms of grave legal differences.
And by the way, deed iis itself an agreement/contract, so consensus between the parties is a mandatory condition.
Generaly conracts which are cumpulsarily registrable are done through deeds like gift deed, lease deed, sale dee etc..
Guest
(Expert) 08 August 2008
In Karnataka and may be elsewhere also the practice is that only one party signs the Deed. Usually the Purchaser presents the Sale Deed which is signed by the seller alone. Deed requires an unilateral act or ommission or forbearance. Whereas Agreement is a stage before the formation of DEED. Both may deal with contract but they have different understanding and operate in different sphere.
Many times we notice that agreement will fix a future date for execution of deed.
Manish Singh
(Expert) 08 August 2008
agreements having force of law are called contract.
agreement without having force of law can not be called contract and hence unfoceable under the law. there is nothing called deed DEFINED IN THE cONTRACT aCT.
How it could be possible that only one party signs the contract in Karnataka. TOP and contract Act cant be go against in Karnataka.
Manish Singh
(Expert) 08 August 2008
fixing a future date is a different subject matter and we can validly set a future date for execution of the contract or even it could be contingent or so, .....
Manish Singh
(Expert) 08 August 2008
Dear Mr. Kotresh,
I AM PUTTING DOWN SOME EXTRACTS from a real estate(in bangalore) compnay's website which speaks about sale deed in karnataka.
"Such a draft deed captioned as ‘draft sale deed’ shall be prepared by the purchaser’s advocate and forwarded to the vendor for his approval. The vendor and his advocate will verify the draft sale deed and if found acceptable, approve it or may suggest suitable deletions, additions or amendments to the draft sale deed. The purpose is to bring forth the correct intention of the parties to the sale transaction. Upon approval of the draft sale deed, the same is prepared on a good quality paper preferably on a document paper. In Karnataka it is prepared either on paper like bond paper or green paper or on document paper, and the stamp duty is payable by way of demand draft or pay order or cash. The exact amount of stamp duty is to be ascertained from the Sub-Registrar office. Purchaser is liable to pay the stamp duty as per value stated in the documents or as per the value fixed by the Sub-Registrar office, whichever is higher.
Execution
After the sale deed is prepared, all the parties to the deed shall execute it by affixing their full signature. Each page should be signed by all the sellers.
Any overwriting, cancellations, erasures and additions, have to be authenticated by full signature of the parties. Execution of the sale deed requires to be witnessed by two witnesses. "
Mr Kotresh, still you say that the sale deed is signed by a single party.
Mr. Kotresh,Please clarify....? but please give a legal and substantial reply and clarification which should not be based, as mostly it happens, on your own caprice.
Murali Krishna
(Expert) 08 August 2008
Dear Manish Singh, let us not get to be so serious. Deeds need consensus ad idem. However, there are deed polls, like wills. Power of attorney is also a deed executed by executant only.
Referring to "Mulla", Under sec 107 of Transfer of property Act, 1882, the transferee is not a necessary party to any deed of transfer, and transferees are not normally named as parties and do not execute the deeds. But in cases where any covenant has to be made by the transferee also, he becomes a necessary party. Further ...A deed of transfer need not be signed by the transferee, even though he is not mentioned as a party. All conditions and covenants are binding on him without his executing the conveyance, if he consents to it by entering upon the land granted under the conveyance.
So, in case of transfer of property, transferee, being not a necessary party,his signature is not necessary.
There may not be any bar for the transferee to sign on the deed, that is what is demonstrated by you, and if there are any covenants by the transferee, he has to sign on the deed.
My understanding is that a deed is an expression of transfer of interest but not an agreement. It may arise out of an agreement. Since, deed in itself is not an agreement, the signature of the person(single party) who is transferring the interest is sufficient.
Manish Singh
(Expert) 08 August 2008
By the way, I was not talking about wills etc. which is not termed as a contract.
Will is not a contract.
Coming to your explanantion, only in case of transmission or inheritance, the consent and approval of the other party is not necessary.
But when it comes to sale/lease or so, both parties need to have their approval by puuting their signature on the same since it is a contract where the subject matter is a fixed consideration. there cant be implied consent to the contract having value of more than 100 Rs. there should be express consent over the same by the parties.
And I humbly request Mr. Kotresh to give reasons for his explanation.
Manish Singh
(Expert) 08 August 2008
According to dictionary meaning deed means "a signed document that outlines the terms of an agreement, especially one that details a change in ownership of property".
K.C.Suresh
(Expert) 08 August 2008
Dear Gurumurthi,
AGREEMENT AND DEED
A meeting of minds with the understanding and acceptance of reciprocal legal rights and duties as to particular actions or obligations, which the parties intend to exchange; a mutual assent to do or refrain from doing something; a contract.
The writing or document that records the meeting of the minds of the parties. An oral compact between two parties who join together for a common purpose intending to change their rights and duties.
An agreement is not always synonymous with a contract because it might lack an essential element of a contract, such as consideration.
Agreement means any meeting of the minds, even without legal obligation. In Law, another name for a contract including all the elements of a legal contract: offer, acceptance, and consideration (payment or performance), based on specific terms.
Agreement means State of agreeing; harmony of opinion, statement, action, or character; concurrence; concord; conformity; as, a good agreement subsists among the members of the council. A concurrence in an engagement that something shall be done or omitted; an exchange of promises; mutual understanding, arrangement, or stipulation; a contract. The language, oral or written, embodying reciprocal promises. Sub S (e) of Section 2 of the Indian Contract Act, 1872 (Act IX of 1872) says an agreement is either a promise or a group of promising.
The consent of two or more persons concurring, respecting the transmission of some property, right or benefit, with a view of contracting an obligation. To render an agreement complete six things must concur; there must be, [1] a person able to contract; [2] a person able to be contracted with; [3] a thing to be contracted for; [4] a lawful consideration, or quid pro quo; [5] words to express the agreement; [6] the assent of the contracting parties.
Agreements are of two kinds; [1] in writing, as contradistinguished from specialties; [2] by specialty, or under seal. In relation to their performance, agreements are executed or executory. An agreement is said to be executed when two or more persons make over their respective rights in a thing to one another, and thereby change the property therein, either presently and at once, or at a future time, upon some event that shall give it full effect, without either party trusting to the other; as where things are bought, paid for and delivered. Executory agreements, in the ordinary acceptation of the term, are such contracts as rest on articles, memorandums, parol promises, or undertakings, and the like, to be performed in future, or which are entered into preparatory to more solemn and formal alienations of property. Powell on Cont. Agreements are also conditional and unconditional. They are conditional when some condition must be fulfilled before they can have full effect; they are unconditional when there is no condition attached.
It is proper, to remark that there is much difference between an agreement and articles of agreement which are only evidence of it. From the moment that the parties have given their consent, the agreement or contract is formed, and, whether it can be proved or not, it has not less the quality to bind both contracting parties. A want of proof does not make it null, because that proof may be supplied aliunde, and the moment it is obtained, the contract may be enforced.
Again, the agreement may be mull, as when it was obtained by fraud, duress, and the like; and the articles of agreement may be good, as far as the form is concerned. Vide Contract. Deed; Guaranty; Parties to Contracts.
A deed is a legal instrument used to grant a right. Deeds are part of the broader category of documents under seal. Deeds can be described as contract-like, as they require the mutual agreement of more than one person.
Historically, for an instrument to be a valid deed it needed six things: It must indicate that the instrument itself conveys some privilege or thing to someone
K.C.Suresh
(Expert) 08 August 2008
Dear Gurumurthi,
AGREEMENT AND DEED
A meeting of minds with the understanding and acceptance of reciprocal legal rights and duties as to particular actions or obligations, which the parties intend to exchange; a mutual assent to do or refrain from doing something; a contract.
The writing or document that records the meeting of the minds of the parties. An oral compact between two parties who join together for a common purpose intending to change their rights and duties.
An agreement is not always synonymous with a contract because it might lack an essential element of a contract, such as consideration.
Agreement means any meeting of the minds, even without legal obligation. In Law, another name for a contract including all the elements of a legal contract: offer, acceptance, and consideration (payment or performance), based on specific terms.
Agreement means State of agreeing; harmony of opinion, statement, action, or character; concurrence; concord; conformity; as, a good agreement subsists among the members of the council. A concurrence in an engagement that something shall be done or omitted; an exchange of promises; mutual understanding, arrangement, or stipulation; a contract. The language, oral or written, embodying reciprocal promises. Sub S (e) of Section 2 of the Indian Contract Act, 1872 (Act IX of 1872) says an agreement is either a promise or a group of promising.
The consent of two or more persons concurring, respecting the transmission of some property, right or benefit, with a view of contracting an obligation. To render an agreement complete six things must concur; there must be, [1] a person able to contract; [2] a person able to be contracted with; [3] a thing to be contracted for; [4] a lawful consideration, or quid pro quo; [5] words to express the agreement; [6] the assent of the contracting parties.
Agreements are of two kinds; [1] in writing, as contradistinguished from specialties; [2] by specialty, or under seal. In relation to their performance, agreements are executed or executory. An agreement is said to be executed when two or more persons make over their respective rights in a thing to one another, and thereby change the property therein, either presently and at once, or at a future time, upon some event that shall give it full effect, without either party trusting to the other; as where things are bought, paid for and delivered. Executory agreements, in the ordinary acceptation of the term, are such contracts as rest on articles, memorandums, parol promises, or undertakings, and the like, to be performed in future, or which are entered into preparatory to more solemn and formal alienations of property. Powell on Cont. Agreements are also conditional and unconditional. They are conditional when some condition must be fulfilled before they can have full effect; they are unconditional when there is no condition attached.
It is proper, to remark that there is much difference between an agreement and articles of agreement which are only evidence of it. From the moment that the parties have given their consent, the agreement or contract is formed, and, whether it can be proved or not, it has not less the quality to bind both contracting parties. A want of proof does not make it null, because that proof may be supplied aliunde, and the moment it is obtained, the contract may be enforced.
Again, the agreement may be mull, as when it was obtained by fraud, duress, and the like; and the articles of agreement may be good, as far as the form is concerned. Vide Contract. Deed; Guaranty; Parties to Contracts.
A deed is a legal instrument used to grant a right. Deeds are part of the broader category of documents under seal. Deeds can be described as contract-like, as they require the mutual agreement of more than one person.
Historically, for an instrument to be a valid deed it needed six things: It must indicate that the instrument itself conveys some privilege or thing to someone
K.C.Suresh
(Expert) 08 August 2008
Dear Gurumurthi,
AGREEMENT AND DEED
A meeting of minds with the understanding and acceptance of reciprocal legal rights and duties as to particular actions or obligations, which the parties intend to exchange; a mutual assent to do or refrain from doing something; a contract.
The writing or document that records the meeting of the minds of the parties. An oral compact between two parties who join together for a common purpose intending to change their rights and duties.
An agreement is not always synonymous with a contract because it might lack an essential element of a contract, such as consideration.
Agreement means any meeting of the minds, even without legal obligation. In Law, another name for a contract including all the elements of a legal contract: offer, acceptance, and consideration (payment or performance), based on specific terms.
Agreement means State of agreeing; harmony of opinion, statement, action, or character; concurrence; concord; conformity; as, a good agreement subsists among the members of the council. A concurrence in an engagement that something shall be done or omitted; an exchange of promises; mutual understanding, arrangement, or stipulation; a contract. The language, oral or written, embodying reciprocal promises. Sub S (e) of Section 2 of the Indian Contract Act, 1872 (Act IX of 1872) says an agreement is either a promise or a group of promising.
The consent of two or more persons concurring, respecting the transmission of some property, right or benefit, with a view of contracting an obligation. To render an agreement complete six things must concur; there must be, [1] a person able to contract; [2] a person able to be contracted with; [3] a thing to be contracted for; [4] a lawful consideration, or quid pro quo; [5] words to express the agreement; [6] the assent of the contracting parties.
Agreements are of two kinds; [1] in writing, as contradistinguished from specialties; [2] by specialty, or under seal. In relation to their performance, agreements are executed or executory. An agreement is said to be executed when two or more persons make over their respective rights in a thing to one another, and thereby change the property therein, either presently and at once, or at a future time, upon some event that shall give it full effect, without either party trusting to the other; as where things are bought, paid for and delivered. Executory agreements, in the ordinary acceptation of the term, are such contracts as rest on articles, memorandums, parol promises, or undertakings, and the like, to be performed in future, or which are entered into preparatory to more solemn and formal alienations of property. Powell on Cont. Agreements are also conditional and unconditional. They are conditional when some condition must be fulfilled before they can have full effect; they are unconditional when there is no condition attached.
It is proper, to remark that there is much difference between an agreement and articles of agreement which are only evidence of it. From the moment that the parties have given their consent, the agreement or contract is formed, and, whether it can be proved or not, it has not less the quality to bind both contracting parties. A want of proof does not make it null, because that proof may be supplied aliunde, and the moment it is obtained, the contract may be enforced.
Again, the agreement may be mull, as when it was obtained by fraud, duress, and the like; and the articles of agreement may be good, as far as the form is concerned. Vide Contract. Deed; Guaranty; Parties to Contracts.
A deed is a legal instrument used to grant a right. Deeds are part of the broader category of documents under seal. Deeds can be described as contract-like, as they require the mutual agreement of more than one person.
Historically, for an instrument to be a valid deed it needed six things: It must indicate that the instrument itself conveys some privilege or thing to someone
Manish Singh
(Expert) 08 August 2008
Its not resolved yet since the queries have have been raisedby our other experts meanwhile.
"Wheen it comes to sale/lease or so, both parties need to have their approval by puuting their signature on the same since it is a contract where the subject matter is a fixed consideration. there cant be implied consent to the contract having value of more than 100 Rs. there should be express consent over the same by the parties."
Manish Singh
(Expert) 08 August 2008
Its not resolved yet since the queries have have been raisedby our other experts meanwhile.
"Wheen it comes to sale/lease or so, both parties need to have their approval by puuting their signature on the same since it is a contract where the subject matter is a fixed consideration. there cant be implied consent to the contract having value of more than 100 Rs. there should be express consent over the same by the parties."
