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What is a deed of agreement?

Deeds of agreement are legally binding contracts. They are generally referred to as indentures. The deed of agreement can be used for many things, but they are usually used for bonds.


Deeds of agreement are used to buy, sell and trade bonds. Bonds may be secured by a third party or a financial backer. The deed of agreement will stipulate all aspects that need to be addressed during bond transfers.


A deed of agreement used in bonds will include when the bonds are supposed to be paid for and transferred. The deed will state the worth of the bond. It will also include when bonds may accrue interest.


When entering any deed of agreement, a person should always read the entire document. Not knowing what the document contains is not a defence in court. Breaking a deed of agreement is illegal.