Legal templates

Deeds of Release & Settlement

An express release (settlement)  of a common law right of action — for example, arising out of a breach of contract or from an actionable wrong — must be made by deed.  The release of a legal right may not be enforced in equity in the absence of a deed or valuable consideration.  To avoid the risk of a lack of valuable consideration it is prudent to use a deed. ‘When in doubt, do a deed’.

 A party to a deed who executes the deed in accordance with the necessary formalities becomes bound by the provisions of the deed from the moment of execution.

Consideration not necessary

 The execution of a deed imports consideration.  An assurance of any property, interest or right without valuable consideration in the form of a deed is enforceable at common law.

Counterpart Deeds are frequently executed with multiple copies (counterparts) to enable each party to the deed to have a copy in their possession. Counterparts that are properly executed are considered to be one deed. Where all parties execute each part, each part is considered equally to be the principal deed.

 A deed must be signed and attested by a witness who is not a party to the deed. A deed may be written by any method of printing or reproducing the written word. A deed may only be discharged by performance or by another deed.