A contract under seal is a type of legal agreement that is signed, sealed, and delivered in a very specific way. This type of contract dates back to medieval times and was once considered to be the most formal and binding type of agreement.
In modern times, the seal has lost some of its significance, but contracts under seal are still in use today. Here’s what you need to know about contracts under seal:
What is a contract under seal?
A contract under seal, also called a sealed contract, is a legal agreement that is signed by a party and then sealed with their signature, a wax stamp, or some other type of seal. This seal acts as a symbol of the agreement’s authenticity and indicates that the signer is bound by the terms of the contract.
What are the benefits of a contract under seal?
There are several benefits to using a contract under seal, including:
1. Greater legal weight: A contract under seal carries more weight in a court of law than a regular contract. It is considered to be a more formal and binding agreement, which can make it easier to enforce.
2. Longer statue of limitations: In some states, contracts under seal have a longer statute of limitations than regular contracts. This means that parties have more time to bring a lawsuit to enforce the contract.
3. Protection against fraud: The seal on a contract under seal provides protection against fraud. If someone forges the seal or tamper with the contract, it is easier to prove that the agreement was not valid.
When are contracts under seal used?
Contracts under seal are typically used in instances where the agreement is particularly important or significant. For example, a contract for the sale of real estate or a business might be executed under seal.
In some cases, contracts are also executed under seal for historical or sentimental reasons. If a company wants to commemorate a significant occasion, such as an anniversary or the signing of a major contract, they might create a contract under seal as a symbol of that event.
How are contracts under seal executed?
To execute a contract under seal, the parties must follow a specific process. First, the document is drafted, and the terms of the agreement are agreed upon. Next, the parties sign the contract in the presence of a witness or witnesses. Finally, the seal is affixed to the document, usually by one of the parties or by a notary public.
In many cases, the seal is a wax stamp that is placed over the signatures and then imprinted with a special seal. The seal might include the name of the party, the date, and other identifying information.
In conclusion, contracts under seal carry more legal weight and are used for significant agreements. While the use of seals has decreased in modern times, contracts under seal are still in use today and are considered to be a more formal and binding type of agreement. As a professional, I hope this article has helped you understand what a contract under seal is and its significance in the legal world.