What is a key characteristic of a contract made by deed?

A contract made by deed is distinctive in that it does not require consideration to be enforceable. In contract law, consideration is typically required for the formation of a binding agreement – this means that both parties must provide something of value. However, a deed serves as a formal and legal instrument that recognizes an obligation regardless of whether something of value has been exchanged.

This feature is significant as it allows parties to create binding commitments without the necessity of mutual exchange, which is often the cornerstone of simple contracts. The requirements for a deed generally include that it must be in writing, specify it is intended to be a deed, and be executed (signed) appropriately, which might not involve necessity for complete individualized consideration that other agreements typically need.

In contrast, the other aspects of consideration, signatures, and notarization pertain to different nuances in contract law. While some deeds may indeed be signed by all parties and might sometimes be notarized depending on jurisdictional requirements, these elements are not foundational characteristics of a deed as it fundamentally stands on its own without needing consideration. This makes the ability to create binding agreements in the format of a deed particularly powerful in legal and business contexts.