Common Legal Documents Explained

A contract is a legally binding agreement between two or more parties. To be enforceable, it generally requires an offer, acceptance, an intention to create legal relations, consideration (something of value passing between the parties) and certainty about the key terms. Contracts may be written or oral, although written contracts are far easier to enforce.

Common examples include employment agreements, leases, supply contracts, terms of service and sale of goods agreements. A solicitor can review a contract before you sign or help you draft one that protects your position.

A deed is a special form of written document that is binding without consideration. Deeds are used where the law requires a higher degree of formality, such as for property transfers, settlement of disputes and gifts. They are signed, sealed and delivered in accordance with the rules of the relevant jurisdiction.

A will sets out how your assets are to be distributed after your death and who will manage your estate. To be valid, it must comply with the formal requirements of your state or territory, including being in writing and properly witnessed. A clear, up-to-date will is one of the most important documents a person can have.

A power of attorney appoints another person to make decisions on your behalf. Enduring powers of attorney remain effective if you lose capacity, which makes them invaluable for planning. Advance care directives allow you to set out the medical treatment you want or do not want if you cannot communicate at the time.

Statutory declarations and affidavits are formal written statements declared, sworn or affirmed to be true. Statutory declarations are used for non-court matters; affidavits are used in court. Both carry serious consequences if they contain false information.

Letters of demand and formal notices are used to assert legal rights without commencing court proceedings. A well-drafted letter often resolves a dispute by setting out the position clearly and giving the recipient a chance to respond. Receiving such a letter is not the end of the world, but it should never be ignored.

Court documents include claims, defences, applications and orders. They are governed by detailed procedural rules that vary by court. If you receive a court document, the time limits to respond are usually short, so prompt legal advice is essential.

If a document is binding, important or unclear, get advice before signing. The cost of a short review is small compared with the cost of signing something you do not fully understand.