FAQs - Covid-19 - Signing contracts while in isolation?

Executing contracts during the Covid-19 pandemic.

Whilst the COVID-19 pandemic continues to significantly disrupt every day life across the world, much business activity continues (such as negotiating, agreeing and executing contracts for the provision of goods and services to be delivered at a time when some degree of normality has returned) - albeit in a largely remote environment.

Traditionally, many contracts have been executed using "wet ink" signatures (i.e. the contract is the document which has on it the original penned signatures of the signatories), but this may not be possible in a remote working environment. In addition, there are added complications if a party's execution of a contract requires two signatures (e.g. if the party is a company).

This article seeks to answer frequently asked questions about executing contracts whilst social isolation and distancing measures are in place. For the purposes of this article, we use the example of a contract that is required to be signed as a deed, by its two parties - Party A (a company) and Party B (an individual).  This article does not cover specific requirements which may apply to validly execute certain documents (e.g. a will), for which specific legal advice must be taken. It also does not cover how contracts are completed (i.e. the steps that need to be taken to bring an executed contract into force and effect (e.g. dating it)), because different steps are required in respect of different types of contract.

Companies and other corporate bodies can in general, but subject to any specific requirements of their constitution, sign contracts by use of a seal, two officers (directors and/or the company secretary) or a director in the presence of a witness.  Care should be taken to ensure that any contract contains the most convenient signature format. Certain corporate bodies and corporation sole will have separate and quite specific requirements not covered here.