Deeds vs agreements for settlement of disputes

Which one and why?

Key points:

Both deeds and agreements are used to record the terms of a settlement and impose legally binding obligations on parties. In this article we explore some of the key differences between deeds and agreements.

Key differences:

Some of the key differences between deeds and agreements include:

• An agreement requires some form of consideration to be valid. A deed, however, 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, whereas actions for breach of a deed may be brought within 12 years.