Execution of Agreements Singapore
Execution of Agreements in Singapore: A Comprehensive Guide
Executing agreements is an important part of conducting business in Singapore. An agreement is a legally binding contract between two or more parties that outlines their rights and obligations. It is essential that the execution of agreements is done in accordance with Singaporean laws to ensure that they are enforceable in court. In this article, we will provide a comprehensive guide on the execution of agreements in Singapore.
Step 1: Drafting the Agreement
The first step in executing an agreement is to draft the document. The parties involved must come to a mutual understanding of the terms of the agreement and agree on the language used in the document. It is advisable to engage a lawyer to help with the drafting of the agreement. The lawyer can provide legal advice and ensure that the document is in compliance with Singaporean laws.
Step 2: Signing the Agreement
The next step in executing an agreement is signing the document. All parties involved must sign the agreement. If the agreement is signed by a corporation, it must be signed by an authorized representative of the company. The representative must have the necessary authority to sign on behalf of the company, either by virtue of their position or through a power of attorney.
Step 3: Witnessing the Agreement
In Singapore, witnesses are not required for the execution of agreements, except for certain types of agreements such as wills and powers of attorney. However, it is advisable to have witnesses when executing agreements as it provides evidence of the parties` intention to be bound by the terms of the agreement.
Step 4: Notarizing the Agreement
If the agreement is intended to be used overseas, it may need to be notarized. A notarized document is a document that has been authenticated by a notary public. A notary public is a public officer who has the authority to verify the authenticity of documents and administer oaths. Notarization is not required for agreements that are intended to be used only in Singapore.
Step 5: Stamping the Agreement
After the agreement has been signed, it must be stamped. Stamping is a process where a stamp duty is paid to the Inland Revenue Authority of Singapore (IRAS) to make the agreement legally enforceable. The stamp duty is calculated based on the value of the transaction or the consideration paid, whichever is higher. If the agreement is not stamped, it cannot be used as evidence in court.
Conclusion
Executing agreements in Singapore is a process that must be carried out in compliance with Singaporean laws. The parties involved must come to a mutual understanding of the terms of the agreement, sign the document, and have it stamped to make it legally enforceable. It is important to engage a lawyer to ensure that the agreement is in compliance with Singaporean laws and is enforceable in court. Following these steps will help to ensure the successful execution of agreements in Singapore.
