There are two forms of agreement written under English law: simple contracts (written “on hand”) and deeds. The execution of this contract or other documents, by fax or other electronic copy of a signature, is considered to have the same effect as an original signature. It is the best practice to sign the agreement in the presence of a third party witness. The witness should also sign the agreement for evidence, in order to avoid future disputes. The agreement should allow the witness to indicate his name and sign his signature. An example of this type of “executed contract” would be a contract for the purchase of a large aircraft. This contract is concluded and the aircraft is delivered immediately. An example of a “performance contract” may be a contract with a general contractor for the construction of a house for which work is expected to begin in four months. It is important to understand that, in both cases, once a contract has been signed by all parties, it becomes legal and binding. Acts can also be beneficial if they are not strictly imposed by law. For example, if a single contracting party derives a real benefit from an agreement, it would be advisable, under English law, to execute the contract as an act so that it is not declared null and void for lack of consideration. Another potential advantage of the acts is that they have a longer legal limitation period than contracts: twelve years.
Your business must execute a contract under the Corporations Act. This provision provides that a company can effectively execute an agreement signed by one (1) two directors of the company;2) a director and a company secretary; or (3) only for own companies, the only director, who is also the secretary of the company. Less often, a company`s statutes can explicitly define alternative methods for executing agreements. The Corporations Act provides methods for the correct execution of agreements by signing directors and secretaries of directors. The document or contract may be drawn up by two or more people, one person and one entity or two or more entities. Contracts generally define one party`s obligations with respect to goods or services to another party and are effective only when all have signed the contract.