Table of Contents
When you sign documents, such as legal documents, on behalf of your business, you finalise agreeing on terms with another party, and the agreement is complete. In UK law, some documents require a witness to your signature for the contract or business transaction to be complete. You must understand these rules to ensure someone lawfully witnesses your signature. This article will explain the law concerning witnessing signatures. It will focus on legal requirements for signatures where the signing process requires the physical presence of a person rather than electronic signatures.
Commercial Contracts Which Need a Witness
Not all commercial contracts require your signature to be witnessed. For example, a ‘simple contract’ such as agreeing to purchase ten laptops through a standard purchase agreement does not need a person to witness your signature on the document.
However, certain documents, such as signing a deed, do require someone to witness your signature on the document. In many situations, including where just one director signs added, it is a legal requirement that a person witnesses your signature.
Witnessing a Signature
It is relatively straightforward for someone to witness you signing a contract. Your witness simply has to watch you sign the document and then sign it themselves to confirm they saw you sign it. Importantly, they must actually view you signing the relevant document rather than signing a pre-signed piece of paper you tell them you marked earlier.
These witnessing rules are in place to primarily avoid forgery and future disputes about whether you signed a document. If someone later challenges whether you actually did, your witness would be expected to confirm, potentially in court, whether they saw you sign. Another reason is to prevent coercion against a party. This is because an individual is more likely to raise concerns about signing the document with someone else in the room.
Continue reading this article below the formCall 0808 196 8584 for urgent assistance.
Otherwise, complete this form and we will contact you within one business day.
Who Can Witness Your Signature?
In some circumstances, there are requirements concerning who can witness your signature on documents. For example, when signing a deed as the sole director of a company, your witness must be someone:
- not involved in making the deed (not the other party or their lawyer);
- who is at least 18 years old;
- with no personal interest in the deal contained within the deed (not a shareholder who would benefit from its signature); and
- who is not related to you.
There is some controversy about whether the last three bullet points are good practice. While the statutory requirements can be complex, common sense can help you. For example, your 15-year-old son or shareholder who stands to benefit from the deal would not be an appropriate witness. However, an adult working for the land registry with no interest in the deal would be a suitable witness.
An Example
Consider for a moment which of the following three individuals a judge is likely to believe if there is a dispute over whether you signed a deed:
- your 15-year-old son;
- your 40-year-old shareholder who stands to benefit from a financial windfall should you be held to have signed the agreement; or
- a 40-year-old working for the land registry you know through a business contact but with no interest in the deal and unrelated to you.
It is reasonable to expect the judge to believe the independent land registry employee because they are a legal adult. Also, there is no conflict of interest or likely loyalty to you. The land registry employee has less reason to lie about your signature than a relative or shareholder.
Many business owners have a preferred witness, who they tend to use for the majority (if not all) of their commercial contracts and who they know meets the requirements mentioned above. If none springs to mind, asking a lawyer to independently witness a signature for you for a small fee (approximately £10) is possible.
LegalVision’s Startup Manual is essential reading material for any startup founder looking to launch and grow a successful startup.
Key Takeaways
Some contracts, like deeds, require an independent person to witness your signature to make the contract legally binding. Where you need a witness, you must be over 18 years of age and not stand to benefit from the business deal. Witnessing requirements are in place to limit future disputes over whether you actually signed the document.
If you need help understanding your contractual obligations, our experienced commercial contract lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.
Frequently Asked Questions
There are requirements about who can witness your signature, one of which is that those under 18 years old cannot be a legal witness.
When you sign an agreement as a ‘simple contract’ rather than a deed, there are no restrictions on who can witness your signature.
We appreciate your feedback – your submission has been successfully received.
