The precise ambit of the sealing requirement for deeds: Lim Zhipeng v Seow Suat Thin [2020] SGCA 89

Parties (“creditors”) who loan money to others (“debtors”) are often concerned that the debtors will be unable or unwilling to repay them. Such creditors may then enter into deeds of guarantee with third parties (“guarantors”) to secure the repayment of their loans if their debtors default on payment of the same. Unlike a contract, a deed does not require consideration to be legally enforceable.[1] However, for a deed to be legally enforceable, several other formalities must be fulfilled. In particular, the deed must be “signed, sealed, and delivered”.

A Guide to Bankruptcy and Debt Recovery in Singapore

For some, a man is only as good as his word. There is logic in this, given that creditors (also known as moneylenders) often worry about whether borrowers will repay their debts. Debt recovery, after all, can be a tedious and frustrating process. Creditors may often receive no response despite calling, e-mailing, and sending letters to the borrower. Looking for them at their home or workplace may be a similarly futile endeavour. And on the off chance that the borrower can be contacted, a common refrain will be that the borrower has no money now, and will repay you later.