legal Binding & Legal commitment

"Deed" is a formal, written and signed legal document that grants the guarantee of certain rights over an object, allowing them to own it or confirms an agreement between parties whereby an interest, right or property, or a binding obligation is created or confirmed. It works like legally binding commitment to accomplish something.

The essential elements of valid deed are:  

1. It must be in writing. 

2. It must be signed. 

3. It must be expressed to be a deed. 

4. It must be witnessed by at least one such person who is not a party to the concerned deed. 

5. It must be delivered to the other party.

The only significant difference between a deed and an contract is that 

1. Deeds have to be written, whereas a contract can be verbal and written,

2. Contracts require ‘consideration’ (i.e. something is given in return), 

3. Deeds do not deeds must state that there is an intention to be a deed 

4. Deeds have a statutory limitation period of 12 years vs six years for a simple contract.

5. Deeds are required in certain types of transactions, including:  

transfer property ownership: movable or immovable, 

Sale Deed, Mortgage Deed, Lease Deed, Gift Deed, Conveyance Deed.