If you`re venturing into any kind of business or legal transaction, you might come across the term “Deed of Agreement.” But what is it exactly?

In simple terms, a Deed of Agreement is a legal document that records an agreement between two or more parties. It outlines the terms and conditions of the agreement and serves as evidence of the agreement`s existence. It can also be referred to as a “Deed of Understanding” or “Deed of Settlement.”

Typically, a Deed of Agreement is used when parties are looking to solve a dispute or to settle an issue. For example, if two parties are in disagreement over a payment or contract, they may use a Deed of Agreement to reach a resolution. The deed will outline the agreed-upon terms, which both parties will need to abide by in order to avoid future disputes.

A Deed of Agreement is different from a contract in that it is a legally binding document, even without consideration. This means that parties are not required to exchange something of value (such as money) to make the agreement legally valid. In contrast, a contract requires consideration for it to be valid.

Another important thing to note is that a Deed of Agreement must be signed and witnessed by both parties. This ensures that both parties have agreed to the terms and conditions outlined in the deed and that it is legally binding.

In summary, a Deed of Agreement is a legal document used to record an agreement between two or more parties. It outlines the terms and conditions of the agreement and serves as evidence of the agreement`s existence. It is legally binding even without consideration and must be signed and witnessed by all parties involved.