Under Hand
A contract under hand, also known as a simple contract, is a contract that is made verbally or in writing and is not formally executed. It does not require any formalities like signature, seal, or witnesses. It is also known as a simple contract, and it is legally binding as long as it satisfies all the requirements for a valid contract, such as offer, acceptance, consideration and legality.
Under Seal (Deed)
A contract under seal, also known as a formal contract or Deed, is a contract that is executed with formalities such as a seal, signature or witnesses. The seal is typically a wax or wafer seal affixed to the document. This type of contract is legally binding and enforceable in court. It is usually used in formal legal documents, such as deeds, mortgages and agreements for the transfer of property or land.
Differences
The main difference between a contract under hand and a contract under seal is the formalities required for execution. A contract under hand can be made verbally or in writing, and does not require any formalities like signatures or seals, while a contract under seal must be executed with formalities such as a seal, signature, or witnesses.
Here’s a quick summary of their key differences:
| Contract Under Hand | Contract Under Seal |
|---|---|
| Also known as a simple contract | Also known as a formal contract |
| No formalities required for execution | Formalities required for execution |
| Made verbally or in writing | Executed with formalities such as a seal, signature, or witnesses |
| Legally binding as long as it satisfies all the requirements for a valid contract | Legally binding and enforceable in court |
| No seal or signature is required | Seal is typically affixed to the document |
| Commonly used in everyday agreements | Commonly used in formal legal documents such as deeds, mortgages and agreements for the transfer of property or land |
