- April 8, 2021
- Posted by: JSA
The standard rules for the execution of documents by companies and LPs under English law offer several options for valid execution of documents. While the execution of an agreement by a director (or member) requires a witness, the company or LLP can avoid it based on the “two signatories” option. To be executed through two signatories, a company must have either two directors or a director and a secretary of the company; and that an LLP has two members. Subsequently, it turned out that the partners` signatures on these acts had not been substantiated, as required by the Property Act 1989. Gleeds` additional liability for funding the system, since the acts had been invalidated, amounted to approximately $45 million. Legal documents are not automatically usable as soon as you print or download them – they still need to be executed correctly. You probably already know that legal documents need to be signed, but another common requirement is that your signature is certified by a third party. The role of the witness is above all to protect himself from counterfeiting or coercion. In the event of a dispute, a witness may be required to provide impartial evidence of the circumstances of the signing.
If the document is an act of trust or a SMSF document, the witness should be in addition to the non-beneficiaries of the aforementioned trust fund or fund. One of the most common types of agreements we work with is the transfer of intellectual property rights (IP). The attribution of the IP may be considered an act, but it is not necessary in many cases. This may also be the case for other agreements that you control. If a document was created as an act, you should consider whether it can be changed to be executed as a simple contract (in this case, no witnesses are required). Ensuring that your contract has been properly certified is essential to ensure that the validity of the contract cannot be challenged. As a general rule, the person you choose as a witness to a document should not have a financial or other interest in an agreement. A neutral third party is the best choice.