Legal Question in Banking Law in India

Re: differences in legal terms

Sir:

Deed in normal parlance relate to transaction involving transfer of real estate, whereas the agreement may relate to any transaction.

Re: differences in legal terms

An agreement may be followed by a deed.

Re: differences in legal terms

deed can contain an agreement. Not necessarily an agreement alone but other documents. An agreement when executed in a written document becomes a deed. Deed is a general term but agreement refers to agreement between two or more parties.

Re: differences in legal terms

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Re: differences in legal terms

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A deed is a legal instrument used to grant a right. Deeds are part of the broader category of documents under seal. Deeds can be described as contract-like, as they require the mutual agreement of more than one person. Deeds can therefore be distinguished from covenants, which being also under seal, are unilateral promises. The deed is best known as the method of transferring title to real estate from one person to another, often using a description of its "metes and bounds." However, by the general definition, powers of attorney, commissions, patents, and even diplomas conferring academic degrees are also deeds.

Historically at common law, for an instrument to be a valid deed it needed six things:

1. It must indicate that the instrument itself conveys some privilege or thing to someone. This is indicated by using the word hereby or the phrase by these presents in the sentence indicating the gift.

2. The grantor must have the legal ability to grant the thing or privilege.

3. The person receiving the privilege or thing must have the legal capacity to receive it.

4. A seal must be affixed to it. Most jurisdictions have eliminated this requirement and replaced it with the signature of the grantor. However, for conveyances of real estate, most jurisdictions[citation needed] require that the deed be acknowledged before a notary public or a civil law notary and some may require a witness or witnesses in addition.

5. It must be delivered to and accepted by the recipient.

6. There must be a witness that also signs the deed.

Conditions attached to the acceptance of a deed are known as covenants.

For the purpose herein above, kind note that covenant, in its most general sense, is a solemn promise to engage in or refrain from a specified action.

More specifically, a covenant, in contrast to a contract, is a one-way agreement whereby the covenanter is the only party bound by the promise. A covenant may have conditions and prerequisites that qualify the undertaking, including the actions of second or third parties, but there is no inherent agreement by such other parties to fulfill those requirements. Consequentially, the only party that can break a covenant is the covenanter.