Formalities in English law are required in some kinds of transaction by English contract law and trusts 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.

Formalities in English law

History

The history of requirements of formality in English law generally shows a gradual shift towards fewer and fewer instances of transaction needing form, as technology and recording of agreements has become more advanced. Originally a contract which was sealed ("made under seal", using a wax seal) was treated differently from other written contracts (which were "made under hand"). It was predominantly a mark of authentication. A document that was "signed, sealed and delivered" was taken as secure. Originally, only a wax seal was accepted as a seal by the courts, but by the 19th century many jurisdictions had relaxed the definition to include an impression in the paper on which the instrument was printed, an embossed paper wafer affixed to an instrument, a scroll made with a pen, or the printed words "Seal" or "L.S." (standing for the Latin term locus sigilli meaning "place of the seal"). If a seal was in place, common law courts regarded it as removing the need for consideration to support the contract. It raised, at least, a rebuttable presumption of consideration.

Formalities in English law

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 as "a meaningless exercise". This was most common on a contract for the sale of land, although the courts also held that a circle containing the letters "L.S." was adequate.

Formalities in English law

The common law rule which required that a deed made by a private individual had to be sealed to be validly executed was finally abolished in 1989 by the Law of Property (Miscellaneous Provisions) Act 1989. The Act implemented recommendations made by the Law Commission of England and Wales in their 1987 report Deeds and Escrows and replaced seals with the requirements that the document had to explicitly state that it was being executed as a deed, and had to be witnessed.

Contracts

In contract law, formality is typically required for large engagements. This includes the sale of land, a lease of property over three years, a consumer credit agreement, and a bill of exchange. A contract for guarantee must also, at some stage, be evidenced in writing. As a matter of contract English law takes the approach that a gratuitous promise, as a matter of contract law, is not legally binding. While a gift that is delivered will transfer property irrevocably, and while someone may always bind themselves to a promise without anything in return to deliver a thing in future if they sign a deed that is witnessed, a simple promise to do something in future can be revoked. This is result is reached, with some complexity, through the English doctrine of consideration.

A contract of employment requires no form to be effective, however an employee has a right under the Employment Rights Act 1996 section 1 to receive written particulars stating the contract from the employer. This may not in fact be the contract, which a court can construe from all the circumstances, but will be strong evidence of it.

Trusts

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). This means, someone can first declare a trust of land without any writing or signature, so long as in the case of a dispute the declaration is evidenced in writing. Second, any "disposition" of an existing equitable interests also requires a signature under section 53(1)(c). Such a declaration actually requires form at the time. Third, under the Wills Act 1837 section 9 requires that the testator signs a written document and this is witnessed by two people.