REALATING TO CONTRACT
This query is : Resolved
Vishnu Agarwal
(Querist)
15 July 2008
WHAT IS THE SEALED CONTRACT?
WHAT IS THE SEALED CONTRACT?
CA Pawan Goswami
(Expert)
11 October 2008
A contract that does not require consideration in order to be binding but that must be sealed, delivered, and show a clear intention of the parties to create a contract under seal
Contracts under seal were in use long prior to the development of the requirement of consideration. They originally usu. were impressed with an actual seal, but today the word seal, the abbreviation L.S., or words such as «signed and sealed" or «witness my seal" may take the place of the seal. Without a clear indication of the parties' intention, however, the presence of a seal, such as a corporate seal, is insufficient to create a contract under seal. Contracts under seal have a substantially longer statute of limitations than contracts based on consideration.
Contracts under seal were in use long prior to the development of the requirement of consideration. They originally usu. were impressed with an actual seal, but today the word seal, the abbreviation L.S., or words such as «signed and sealed" or «witness my seal" may take the place of the seal. Without a clear indication of the parties' intention, however, the presence of a seal, such as a corporate seal, is insufficient to create a contract under seal. Contracts under seal have a substantially longer statute of limitations than contracts based on consideration.
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