Head 1: Execution of Deeds Flashcards

1
Q

What does s1 of the RWSA 1995 provide for?

A

The general rule that writing is not required for the constitution of a contract, unilateral obligation or trust.

REMEMBER: 1995 Act applies to deeds executed on or after 1 August 1995.

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2
Q

What does s2 of the RWSA 1995 provide for?

A
  • The is a qualification to the general rule e.g. contracts for “creation, transfer, variation or extinction of a real right in land”
  • Lists different situations in which writing must be used (and providing for the form of writing required: “a written document complying with section 2 of this Act”)
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3
Q

What are the 6 juridicial acts which require writing under s.1(2)?

A

(A) Wills and codicils (s 1(2)(c)).

(B) Creation, transfer, variation or extinction of real right in land
⁃ otherwise by the operation of a court decree, enactment or rule of law (rule of the common law, for example it is sometimes possible to extinguish a right without writing).

(C) Contract or promise (“unilateral obligation”) for (B) (s 1(2)(a)(i)).
⁃ Standard example is a contract for the sale of land (usually known as missives of sale). The contract for the sale of land must be in writing in accordance with s 1(2)(a)(i)

(D) Gratuitous promise, except in the course of business (s 1(2)(a)(ii)).

(E) Truster-as-trustee trust (s 1(2)(a)(iii)).

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4
Q

What is the definition of a “real right in land”?

A
  • s 1(7) - this gives a definition of a ‘real right in land’ as ‘any real right in or over land, including any right to occupy or to use land or to restrict the occupation or use of land but does not include:
    ⁃ A tenancy
    ⁃ A right to occupy or use land; or
    ⁃ A right to restrict the occupation or use of land if the tenancy or right is not granted for more than one year etc.
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5
Q

What are the consequences if formal writing not used when required?

A

⁃ In general the purported right is void. But in the case of contracts, promises and trusts (only) the right is valid in cases where the person seeking to deny the contract etc is personally barred as a result of the actings of the other party (s 1(3)-(5)).
⁃ Personal bar does not apply to s 1(2)(b) or (c) - the creation etc of real rights.

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6
Q

What is a deed?

A

A ‘deed’ is a juridical act constituted in writing - a document which has legal effect.

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7
Q

How are deeds classified? Give examples.

A

Deeds are often classified as either inter vivos or mortis causa deeds.

1. Inter vivos deeds are those granted by persons during their life and which take effect during their life. Mainly:
⁃	Disposition
⁃	Assignation
⁃	Standard security
⁃	Lease
  1. Testamentary (Mortis causa) deeds are granted by persons during their life but which only take effect on death. Mainly:
    ⁃ Wills.
    - Assignation standard security lease (bilateral)
    - Trust disposition and settlement codicil
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8
Q

What is the requirement for the formal validity of traditional documents?

A
  • s 2 RWSA 1995 requires that documents which require writing [under s 1(2)] shall only be valid if they have been subscribed by the grantor of the document. If there is more than one grantor then the document must be subscribed by each grantor.
  • Since most deeds are unilateral it is only the grantor who is required to subscribe the documents.

[s2(1) No document required by section 1(2) of this Act shall be valid in respect of the formalities of execution unless it is subscribed by the granter of it or, if there is more than one granter, by each granter, but nothing apart from such subscription shall be required for the document to be valid as aforesaid.]

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9
Q

How must the offer and acceptance be subscribe in a contract or unilateral obligation for the creation, transfer, variation or extinction of a real right in land?

A

In contracts constituted by offer and acceptance, both the offer and the acceptance must be so subscribed by the granter or granters thereof (as in s2) (s 2(2)).

[s2(2) A contract mentioned in section 1(2)(a)(i) of this Act may be regarded as constituted or varied (as the case may be) if the offer is contained in one or more documents and the acceptance is contained in another document or other documents, and each document is subscribed by the granter or granters thereof.]

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10
Q

What does subscription mean? In which provision is this? [Must know all of this!!]

A

Subscription (this means writing underneath) is provided for by s 7 RWSA.

**Section 7 RWSA 1995
(1) Except where an enactment expressly provides otherwise, a document is subscribed by a granter of it if it is signed by him at the end of the last page (excluding any annexation*, whether or not incorporated in the document as provided for in section 8 of this Act).

[Multiple granters] (3) Where there is more than one granter, the requirement under subsection (1) above of signing at the end of the last page of a document shall be regarded as complied with if at least one granter signs at the end of the last page and any other granter signs on an additional page.

  • *
  • Legal documents are often drafted with appendices or schedules annexed at the end (like schedules in a statute). When s 7(1) refers to annexation, it is these schedules and appendices which are being referred to. It is the document proper to be signed, not the appendices.
  • If there are multiple grantors then each granter must sign.
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11
Q

What if there is not enough physical space for all the granters to sign at the bottom of the document?

A

This is dealt with expressly by section 7 (3): as long as one granter signs at the end of the last page
and all the other granters sign on an additional page.

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12
Q

What is the special position of the Queen?

A

The Queen has a special position in which she can superscribe rather than subscribes (this means she signs at the top of the document rather than the bottom).

This is provided for by s 13(1)(a)

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13
Q

Does the signature have to be legible? Which case litigated this principle?

A

Signature need not be legible:
⁃ This has been litigated a number of times; one example is Stirling Stuart v Stirling Crawfurd’s Trs (1885) 12 R 610:
⁃ It was held in this case, and has been held in other cases, that illegibility is not in itself a reason for denying legal effect to a signature.
⁃ However, there are certain rules concerning what a signature must consist of. If a signature is illegible it may be difficult to know whether the rules have been complied with or not, and therefore difficult to know whether it is valid signature or not. The practical effect of all this is that clients should be encouraged to sign legibly.

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14
Q

Do you have to sign a traditional document yourself?

A

A person may appoint an agent to execute the deed on his behalf. The agency need not be in writing, although often it is created by a formal power of attorney (S 12 (2)).

Additionally, under section 9, if a person is blind or unable to write, the deed may be executed on his behalf by a solicitor or advocate or justice of the peace or
sheriff clerk. This is sometimes known, misleadingly, as notarial execution. The procedure is set
out in s 9 and Sched 3.

A blind person is entitled to sign on his own (s 9(7)).

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15
Q

What is the difference between the power of attorney method and section 9 for having someone else sign for you?

A

The difference between the power of attorney method and section 9 is that under section 9 persons do not need to appoint someone; a person is appointed by the law to sign for that person.

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16
Q

Under which section are the methods of signing?

A

Three methods in provisions (s 7(2)(a)(b) and (c))

17
Q

What are the three possible ways of signing a document under s.7(2)?

A

(i) Standard method. Surname + forename (or initial or abbreviation or familiar form of forename). So James Andrew Graham or J A Graham or J Graham or A Graham or Jas Graham or Jimmy Graham. Note that flexibility applies only to the forename.

Examples:
⁃	James Andrew Graham
⁃	J A Graham
⁃	J Graham
⁃	A Graham
⁃	Jas Graham
⁃	Jimmy Graham
⁃	All of these examples would be compliant with [B].

(ii) Informal method. Any other name or description or initial or mark. So James or Graham or Jimmy or J or Dad or Grandpa. But note (a) must satisfy either (i) or (ii) of s 7(2)(c), and (b) cannot be used for probative (ie s 3) deeds.

James ⁃	JG ⁃	J ⁃	Dad

(iii) Longstop method. The full name by which granter is identified in deed.

Most signatures will conform to paragraph (B) - standard method.

18
Q

Which signatures can not be used for section 3 deeds (for the deed to be probative)?

A

(ii) Informal method. Any other name or description or initial or mark. So James or Graham or Jimmy or J or Dad or Grandpa. But note (a) must satisfy either (i) or (ii) of s 7(2)(c), and (b) cannot be used for probative (ie s 3) deeds.

James ⁃	JG ⁃	J ⁃	Dad
19
Q

How do juristic persons sign?

A

Although a juristic person is a ‘person’ legally speaking, a juristic person cannot hold a pen, therefore somebody has to sign on behalf of the juristic person.
Special provision is made in 1995 Act Schedule 2 : NB this is a very important part of the act and is the only schedule we need to know). Schedule 2 goes through different types of juristic person and there is a separate paragraph for each of the main types of juristic person. ***THEY ARE ALL VERY IMPORTANT AND MUST BE LEARNED:

20
Q

What does schedule 2 of the 1995 Act say?

A

(i) Partnerships (para 2(1),(2)).
⁃ Signature of partner or of authorised person. May use either own name or firm name. So Dorothy Murray or Dundas & Wilson.

(ii) Companies (para 3(1)).
⁃ Signature of director or secretary or authorised person.

(iii) Limited liability partnerships (para 3A(1)).
⁃ Signature of member of the LLP.

(iv) Local authorities (para 4(1)).
⁃ Signature of proper officer of the authority.

(v) Other bodies corporate (para 5(1),(2)).
⁃ Signature of member of governing body or secretary or authorised person. This is a wide category which includes building societies, trade unions, universities, foreign companies.
⁃ This paragraph applies to companies which are not British since paragraph 3 applies only to British companies.

21
Q

What is the main purpose of ensuring a document is probative?

A

It must be probative in order to be registered.

22
Q

What does probative mean?

A

Probative means presumed to be validly executed. Of course, there is a difference between a deed being validly executed and a presumption that a deed is validly executed. Nevertheless this legal presumption is very valuable.

It is valuable because if the authenticity of a deed or document is disputed, then the presumption determines where the onus of proof rests.

23
Q

When is a deed probative?

A

A deed which is merely subscribed under s 2 is valid but improbative. To make a deed probative by attestation, under s 3, it is necessary to comply with 5 different requirements.

  1. Normally under s 3 probativity is achieved by attestation (i.e. witnessing).

Step 1
◦ Step one is exactly the same as under s 2: the granter subscribes the deed (s 3(1)(a)), but only by methods (i) (standard) or (iii) (longstop) (see above).
◦ Immediately he does so the deed is formally valid under s 2. The only purpose of doing anything more is to make the deed probative.
⁃ NB. In addition, for the purposes of probativity, a will (“testamentary document”) must be signed (NB not subscribed) on every sheet (s 3(2)). In practice wills are usually signed on every page due to concerns over ‘substitution’ of sheets. Also, in terms of sheets, signing is only necessary on each sheet, even if both sides are used.

Step 2
A witness is to hand. There are certain rules concerning who can be a witness. Positively, the witness must:
⁃ (i) be 16 or over
⁃ (ii) be of normal mental capacity
⁃ (iii) “know” the granter (this is a sort of identity check) (s 3(4)(c)). For (iii) see s 3(5).
Negatively, in the case where a deed is signed by more than one persons, the witness must not be another granter (s 3(4)(b))

Step 3
The granter must either sign in the witness’s presence (i.e. the witness watched him sign), or (having signed earlier) he must acknowledge his signature to the witness (s 3(7)) - this would normally be done by saying something like “that’s my signature” while pointing to it on the deed.

The law states that if the signature is acknowledged, this in principle can be ‘non-verbal’.

Step 4
• The witness must signs (NB not subscribes) to indicate that they witnessed the event.
• [The convention is that the grantors of the deed sign at the foot of the righthand side while the witnesses sign at the foot of the left hand side.]
• He may sign either by method (i) (standard) or method (iii) (longstop) above (s 7(5)).
• The same person may witness the signatures of more than one granter, and in that case need only sign once (s 7(5)).
• The signature must be “one continous process” with the event witnessed (ie either subscription or acknowledgement). This means that the witness must sign at the same time as witnessing the signature of the granter. The law will not allow a significant delay in the witness signing (due to fear that if the witness doesn’t sign immediately then the deed they may come to sign could be a different deed from the one they believed it to be).
⁃ See eg Thomson v Clarkson’s Trs (1892) 20 R 59:
⁃ Law clerks acting as witnesses went to someone’s house and saw a person sign. Rather than signing at the time, the law clerks took the deed back to the office and signed in the office (45 mins later).
⁃ This was held to be valid, partly because they were law clerks and partly because the deed was never out of their sight.

Step 5
⁃ The witness must be designed in the deed or in the testing clause (s 3(1)(b)&(4)(f)). (The testing clause is a special clause added at the end of a deed which gives details of the attestation of the witness).

⁃ As to when this must be done, see s 3(3):
⁃ (a) “The name and address of a witness may be added at any time before the document is:
⁃ (i) founded on in legal proceedings; or
⁃ (ii) registered for preservation in the books of Council and Session or in sheriff court books
⁃ (b) The name and address of a witness need not be written by the witness himself.

⁃ A witness is designed by name (not necessarily full name) and by address. In practice the testing clause invariably gives the place and date of execution, although neither is required. However under s 3(8)(b) where the document bears to state the date or place of subscription, there shall be a presumption that

⁃ The testing clause is (usually) added/completed after execution, although often it is pre-printed with blanks for the date and place of execution and the name and address or the witness. Hence the testing clause is not part of the deed itself.

24
Q

How do you know when a deed is probative?

A

⁃ Since probativity is all about presumptions, the test for whether a deed is probative is simply whether it appears to have been validly attested (or equivalent). [This means that if a deed looks okay, then it is presumed to be valid, even if in actual fact it is invalid.]

[[See s 3(1):
⁃ Subject to subsections (2) to (7) below, where-
⁃ (a) a document bears to have been subscribed by the granter of it;
⁃ (b) the document bears to have been signed by a person as a witness of that granter’s subscription and the document, or the testing clause or its equivalent, bears to state the name and address of the witness; and
⁃ Nothing in the document, or in the testing clause or its equivalent indicates-
⁃ (i) that it was not subscribed by that granter as it bears to have been so subscribed; or
⁃ (ii) that it was not validly witnessed for any reason specified in paragraphs (a) to (e) of subsection (4) below
⁃ the document shall be presumed to have been subscribed by that granter.]]

25
Q

What are the presumptions of probativity?

A
  1. A probative deed is presumed to have been subscribed by the granter (s 3(1)) - and hence presumed to be validly executed under s 2.
  2. A probative deed is presumed to have been subscribed by the granter on the date stated in the deed or testing clause (s 3(8)).
  3. A probative deed is presumed to have been subscribed by the granter at the place stated in the deed or testing clause. 


They are presumptions only, and may be rebutted by contrary evidence, including lack of legal capacity, lack of title to grant the deed, errors in the text of the deed, etc.

26
Q

How do you challenge a probative deed?

A

A probative deed is presumed to be validly executed. The onus of showing invalid execution rests on the person seeking to challenge the deed.

In a court action, the onus might be discharged by:

(i) Direct attack.
⁃ Lead evidence to show that the granter did not in fact subscribe. Result if successful: deed is void.

(ii) Indirect attack. [s 3(4)(a)-(g)]:
⁃ Lead evidence to show that the attestation (or equivalent) was not properly carried out. Section 3(4) sets out the possible lines of attack.
⁃ Result if successful: deed becomes improbative but not invalid - this is because it simply loses its probative status (the presumption falls but the fact of validity may still remain). The onus of proof would then shift and pass to the person seeking to found on the deed to show that it was in fact subscribed by the granter. If he can then demonstrate subscription he may enforce the deed. If he cannot demonstrate subscription he may not enforce the deed.

Grounds of indirect attack as set out in s 3(4) - To learn
[⁃ “Where, in any proceedings relating to a document in which a question arises as to a granter’s subscription, it is established–
⁃ (a) that a signature bearing to be the signature of the witness of that granter’s subscription is not such a signature, whether by reason of forgery or otherwise;
⁃ (b) that the person who signed the document as the witness of that granter’s subscription is a person who is named in the document as a granter of it;
⁃ (c) that the person who signed the document as the witness of that granter’s subscription, at the time of signing–
⁃ (i) did not know the granter;
 ⁃ [[s 3(5) - the witness needs to have ‘credible information [at that time] of his identity’ to have ‘known’ the granter.]]

(ii) was under the age of 16 years; or

(iii) was mentally incapable of acting as a witness;
⁃ (d) that the person who signed the document, purporting to be the witness of that granter’s subscription, did not witness such subscription;
⁃ (e) that the person who signed the document as the witness of that granter’s subscription did not sign the document after him or that the granter’s subscription or, as the case may be, acknowledgement of his subscription and the person’s signature as witness of that subscription were not one continuous process;
⁃ (f) that the name or address of the witness of that granter’s subscription was added after the document was founded on or registered as mentioned in subsection (3)(a) above or is erroneous in any material respect; or
⁃ (g) in the case of a testamentary document consisting of more than one sheet, that a signature on any sheet bearing to be the signature of the granter is not such a signature, whether by reason of forgery or otherwise,
⁃ then, for the purposes of those proceedings, there shall be no presumption that the document has been subscribed by that granter.”]

27
Q

When is attestation the only method of attaining probativity?

A
  • Attestation is the only method of attaining probativity in cases where the granter is a natural person or a partnership (except by recourse to the court under s 4, for which see below).
    • Attestation is one of the two available methods of attaining probativity in all other cases. For details, see schedule 2, which provides variants of s 3 (this was met in part B in relation to the method by which juristic persons sign).
    • Schedule 2 provides special ‘bespoke’ versions of s 3 (concerned with probativity) for each juristic person.
28
Q

Students must know schedule 2 thoroughly - ALL THE PROVISIONS. What are they?

A

⁃ Companies (sched 2, para 3(5)).
⁃ Method 1
⁃ (1) The director or secretary (or another person bearing to have been authorised to subscribe the document) of the company must sign and there must appear to have been a witness to this subscription by another person.
⁃ This is essentially the same method as with normal juristic persons.

⁃ Method 2
⁃ (1A) A document shall be presumed to have been subscribed by the company if it bear to have been subscribed on behalf of the company by two directors of the company or a director and secretary of the company or two persons bearing to have been authorised to subscribe the document on behalf of the company.
⁃ This is the other way by which probativity may be realised by a company, without using a witness.

⁃ Other bodies corporate (sched 2, para 5(5))
⁃ Method 1
⁃ Where a document bears to have been subscribed on behalf of a body corporate by a member of the governing board, a secretary of the body or a person bearing to have been authorised to subscribe, and a witness appears to have subscribed etc, then the document shall be presumed to be subscribed by the body corporate.

⁃ Method 2 (schedule 2 para 5(5) relating to 3(1)(b)
⁃ If the subscription was not witnessed and subscribed but the witness (i.e. the normal method) if the document bears to have been ‘sealed with the common [wax] seal of the body’ then it is presumed to be have been subscribed by the body corporate. NB The seal must be officially put on by someone authorised to do so.

  • In the case of local authorities and of bodies corporate other than British companies the alternative method of attaining probativity is by sealing the deed with the common seal. This must be done by a person with authority, and on the same day as the subscription. See Sched 2, paras 4 & 5.
    • In the case of British companies the alternative method of attaining probativity is by having the deed subscribed by a second signatory. Thus in total what is required is the subscriptions of (a) 2 directors or (b) a director and the secretary or (c) 2 authorised persons. See Sched 2, para 3(5). Note: no mixed doubles.
    • In the case of limited liability partnerships the alternative method of attaining probativity is by having the deed subscribed by 2 members of the LLP. See Sched 2, para 3A(5).
29
Q

Why might a granter choose section 3 (subscription +attestation option)?

A

There are three reasons why a granter might choose s 3:

(i) Probativity.
⁃ Only a deed which is attested (or equivalent) is probative. A granter is likely to want probativity if the deed is more than just ephemeral. In 20 years time it might be very difficult to prove subscription: probativity removes the need for such a proof. In practice most deeds and documents prepared by solicitors are probative.

(ii) Registration.
⁃ Subject to minor exceptions, only probative deeds can be registered in the Land Register, Register of Sasines or (for preservation) in the Books of Council and Session or sheriff court books (s 6).

iii) Confirmation of executors.
⁃ An executor cannot receive confirmation by the court unless the will is probative. See Succession (Scotland) Act 1964 s 21A (added by 1995 Act Sched 4 para 39).

30
Q

Is it possible to convert an improvative deed into a probative one?

A

There are two possibilities (these depend on whether the granter is still alive or not)

1) If the granter is still alive and readily available, he can acknowledge his subscription to a witness who can then sign. The deed is then probative under s 3.
2) Alternatively, an application can be made to the Sheriff Court under s 4 to have the deed endorsed with a certificate stating that it was subscribed by the granter. [The details don’t matter for the purposes of this course]. Evidence of valid subscription must be produced - but uncorroborated affidavit (paper) evidence is usually sufficient (s 4(3)). On endorsement, the deed is then probative by court certificate.

31
Q

What is an annexation?

A

The definition of annexations is found in s 12(1):

“Any inventory , appendix, schedule, other writing, plan, drawing, photograph or other representation annexed to a document.”

Such things may be incorporated into a traditional document (very common in practice).

32
Q

How is the incorporation of annexations at common law regulated?

A

Section 8 of the 1995 Act:

Under s 8 an annexation is incorporated into a deed if:

(i) the deed contains words of incorporation (i.e. the main deed must state that there is an annexation), and
(ii) the annexation is identified on its face as being the annexation referred to in the document (eg “This is the plan referred to in the foregoing Disposition of 9 High Street, Kirkcaldy”), and
(iii) (in the case of plans and other forms of description of land only), the annexation is signed (for details see s 8(2)(c) & 8(5)). [So annexations don’t normally need to be signed, only these particular types of annexation require signing.]

33
Q

What is the definition of alterations?

A

Alterations at one time were a major part of the law of execution of deeds, since correcting mistakes in the pre-digital age was much much more difficult.

This has become far less common since mistakes can simply be printed correctly, however provisions still exist.

There is a definition of alterations in s 12(1) as including:
⁃ “Interlineation, marginal addition, deletion, substitution, erasure or anything written on erasure.”

34
Q

What is the difference between ‘pre-subscription’ and ‘post-subscription’ alterations?

A

⁃ An alteration made before subscription is treated as part of the deed.
⁃ An alteration made after subscription is not - of course - part of the deed. Consequently it is ignored, unless the granter chooses to execute it afresh.

While this rule seems obvious, there is an obvious difficulty in practice: How can you tell whether an alteration was made before or after subscription?

You cannot usually tell by looking at a deed whether an alteration was made before or after:

In the case of s 3 deeds (ie attested or equivalent) the problem of leading evidence is avoided if it is stated in the testing clause (or deed) that the alteration was made before subscription. This statement (whether true or not) gives rise to a presumption of pre-subscription alteration. See s 5(4), (5).

If the alteration is an important one, and there is litigation on the deed and it does not benefit from this presumption, then it will be necessary to lead (oral) evidence on when it was made.

35
Q

What were the formalities of execution (of an electronic document) before 1 August 1995?

A

(i) Attested writing. Governed by the authentication statutes (the Subscription of Deeds Acts 1540, 1579 & 1681, and the Deeds Act 1696). Deed must be subscribed by granter + 2 witnesses. Rules of attestation almost identical to 1995 Act rules.
(ii) Holograph writing. Common law. Deed must be subscribed by granter and either

(a) substantially in his handwriting or
(b) executed with the handwritten docquet “adopted as holograph”.
Roughly speaking -

holograph writings = s 2 writings (subscribed)

attested writings = s 3 writings (attested or equivalent)

Holograph writings are improbative.

Attested writings are probative (or, more strictly, writings which appear to be attested are probative).

Note that under the pre-1995 law attestation conferred not merely probativity but also validity. Thus a deed subscribed by the granter without witnesses was not valid under pre-1995 law; and errors in the attestation process could lead to the invalidity of the whole deed, although minor errors (“informalities of execution”) were forgiven by virtue of s 39 of the 1874 Act.

36
Q

In simple terms, when does a deed become legally effective?

A

On delivery.

This rule only concerns inter vivos deeds - in the case of a will, it is not effective until the death of the granter. Unilateral inter vivos deeds are ineffective until delivered to grantee.

37
Q

How is delivery achieved in practice?

A
  1. The granter (or agent, e.g. a solicitor) must hand over or send the deed with the intention of delivering it.
    ⁃ Nb there is a practice of sending deeds early “to be held as undelivered” until for example the price of the property is paid - so the deed would only become operative after a condition is purified.
  2. The grantee must accept delivery (obligations are then binding on him).
38
Q

What happened in the case of Standfield’s Creditors v Scot’s Children (1696)?

A

⁃ An assignation had been signed by Standfield in favour of Scot. Standfield left the deed on his table and told Scot it had been subscribed and directed for him [Scot]. Standfield was then strangled.
⁃ The question was whether the deed had or had not been delivered?
⁃ The court held that the deed was not delivered. This is because until the ultimate deed of ‘delivering’ the letter had been carried out, the deed could still have been cancelled or changed by Standfield.

So this case clearly shows the distinction between ‘signing’ and ‘delivery’.

39
Q

What is the rule for the delivery of an electronic document?

A

An electronic document is ‘may be delivered electronically or by such other means as are reasonably practicable’ (1995 Act s 9F(1)).