Formalities in English law

In a limited number of cases, agreements and trusts will be unenforceable unless they meet a certain form prescribed by statute.

The main kinds of formality that a statute can require are to put the transaction in writing, to make a deed, or to register it at a government registrar (such as HM Land Registry or Companies House).

While contracts and trusts can be generally created without formality, some transactions are thought to require form either because it makes a person think carefully before they bind themselves to an agreement, or merely that it serves as clear evidence.

If a seal was in place, common law courts regarded it as removing the need for consideration to support the contract.

By the 20th century a small circle of red adhesive paper affixed to the document in question was sufficient when an individual had to use a seal.

This process was described in a report of the Law Commission, Transfer of Land: Formalities for Deeds and Escrows[2] as "a meaningless exercise".

This includes the sale of land,[6] a lease of property over three years,[7] a consumer credit agreement,[8] and a bill of exchange.

Trusts can generally be made without formality, however three main, large and practically relevant exceptions exist.

First, a trust of land requires a signature on a written document evidencing a declaration, under the Law of Property Act 1925 section 53(1)(b).

Third, under the Wills Act 1837 section 9 requires that the testator signs a written document and this is witnessed by two people.

Precautionary measures have been introduced in recent years to verify the identity of persons attempting to change records of title.

[19] Also, the changes relating to deeds which were introduced in 1989 do not apply to corporations sole such as Government Ministers or bishops of the Church of England.