Difference between Registered Agreement and Contract

When it comes to business and legal agreements, the terms “registered agreement” and “contract” are often used interchangeably. However, there are important differences between the two that business owners and legal professionals should be aware of before entering into any kind of agreement.

Registered Agreement

A registered agreement, also known as a recorded agreement or deed, is a legal document that is registered with the appropriate government authority. This type of agreement is typically used for long-term business relationships, such as joint ventures, partnerships, or franchise arrangements.

The registration process is essential for a registered agreement because it provides legal recognition and a higher level of security to the agreement. Once the agreement is registered, it cannot be modified or terminated without the consent of all parties involved. Additionally, it becomes a public record which means it’s open for public inspection.

In most countries, a registered agreement must be signed in the presence of a witness, and the parties involved must provide a government-issued ID for verification purposes. Once it is signed and registered, the agreement becomes legally binding and enforceable.

Contract

A contract, on the other hand, is a legal agreement between two or more parties that outlines what each party is obligated to do or not do. Contracts can be written or verbal, but it is always advisable for a contract to be in writing. Contracts generally do not need to be registered with any government authority, but they must be signed by all parties involved.

Contracts are generally used for business relationships that are less complex than those that require a registered agreement. For instance, a contract may be used for the provision of goods and services or to govern an employee-employer relationship.

The main difference between a registered agreement and a contract is that a registered agreement must be registered with a government authority while a contract does not. However, it’s essential to note that a registered agreement is usually more secure and legally enforceable than a contract.

In Conclusion

Whether you are entering into a registered agreement or a contract, it`s vital to understand the differences between the two and how they impact your legal rights and obligations. Always seek the advice of a legal professional before entering into any legal agreements, to ensure you understand all the terms and conditions involved.