Words and phrases

 

Formal and informal contracts

A 'formal' contract is one that is executed (made) in the form of a deed, that is, in accordance with the special requirements of a deed. A deed must not only be in writing, but must be signed, witnessed, sealed and a copy delivered to each party.

All other contracts are regarded as 'informal', even if they are in writing.

Formal contracts do not need to be supported by consideration, but informal contracts must be.