The main difference between an act and a written agreement is that no quid pro quo is necessary for the act to be binding. The lack of consideration is overcome by the idea that a document of the performing party is intended as a solemn indication that the party really intends to keep its promise. In the event of an infringement, the limitation period is usually 6 years after the infringement. In the case of acts, it is customary, because of their unique nature, to find a limitation period of 12 years. Lawyers are often asked what the difference is between a document and an agreement and when you would use what type of document. In a recent decision, 400 George Street (Qld) Pty Ltd v BG International Ltd  QCA 245 (400 George Street), confirmed the Queensland Court of Appeal, that the act and agreements differ on the basis of the following: how to avoid confusion between an act and an agreement In contrast, the Court of Appeal ruled in In Roma Pty Ltd v Adams  QCA 347, that the performance of a document by a party should constitute delivery, because the party relying on the document did not wait for the counterparty to perform the document before sending the signed forms necessary for registration. For example, the court stated that the performance of the deed by a proposed tenant did not constitute a delivery, because the tenant only wanted to be related when all parties had performed the deed, and this had not been done. In another case, the court held that enforcement could be considered meaningful if the party relying on the document did not wait for the counterparty to perform the act before sending the signed forms necessary for a given registration. The deed must also be signed, sealed and handed over to the counterparty so that it is mandatory. For an agreement to be legally enforceable, it must be “(3) A corporation may perform a document as an instrument if the document is performed as an instrument and is performed in accordance with subsection (1) or (2).” The period during which a right to an instrument may be invoked depends on the law of the State concerned. For example, 12 years in Queensland, New South Wales, the capital Australian territory, the Northern Territory or Tasmania and Western Australia; and 15 years in Southern Australia and Victoria.
This decision may be based on a number of considerations; However, it is important to reflect on the binding effect of the act. The nature of a document is that it is binding on the manufacturer as long as it has been signed, sealed and delivered – even if the parts have not been replaced. In this sense, a document is often used by the parties: please note that, notwithstanding subsection (4) above of Sn 127, “this section does not limit how a company may execute a document (including a document)”. The Corporations Act 2001 (Cth) also deals with the performance of acts by entities. Section 127(3) provides that a document is a particular form of document that indicates a person`s most sincere promise to do something with which he or she has engaged. According to the Common Law, the conditions for the execution of a document are that it must be written, sealed and given to the other party. In the simplest case, an act is a promise that is not supported by consideration. Therefore, the intention of the parties to be bound by the act cannot be inferred as would be the case if the document were a contract.
Some documents are prescribed by law to be executed in the form of a document. For example, in some Australian countries, land transfers will not be valid unless they are made by an act if the phrases used in the document contain “performed as an act” or “by the performance of that act”, this will show that the document was an act and not an agreement, although this may not be sufficient in itself. Another important difference between the act and the agreements is the limitation period. . . .