ABSTRACT

Contracts under seal 3 .02 There are some contracts which have to be made or evidenced in writing (such as contracts to transfer interests in land) and some contracts have to be made under seal. Either there is literally a wax seal at the end of the document where the parties sign, or there is some mark representing a seal. But any contract may be made under seal, and the seal provides the consideration for the contract (see below). The most important consequence, and often the reason why parties choose this method of contracting is that the limitation period for making a claim pursuant to a contract under seal is twelve years instead of the usual six (see paragraphs 14.01 – 14.02).

Basic requirements for establishing whether there is a contract 3 .03 To test whether there is a contract the court or arbitral tribunal will look for three essential things: fi rst, the intention of the parties to create legal relations, second, whether there was in fact agreement between the parties and third, whether there was consideration for the agreement. Each of these aspects requires further scrutiny.