Signatures on credit agreement

[jon1965]

I think I should know the answer to this but I have a niggle in the back of my mind.

For an agreement to be properly executed it should be signed by both the creditor and the debtor but I seem to remember reading somewhere that the need for the creditors signature was somewhat vague.

So I guess the question is
Does the creditor need to sign the agreement and if so in what form does that signature need to be to comply with the CCA

[Guest]

Re: Signatures on credit agreement

I think I should know the answer to this but I have a niggle in the back of my mind.

For an agreement to be properly executed it should be signed by both the creditor and the debtor but I seem to remember reading somewhere that the need for the creditors signature was somewhat vague.

So I guess the question is
Does the creditor need to sign the agreement and if so in what form does that signature need to be to comply with the CCA

In order for an agreement to be "properly executed" it has to be signed by both the debtor and the creditor(section 61), if it is not then the agreement can only be enforced by an order of the court(section 65).

If the debtors signature is missing and the agreement is pre April 2007 then an enforcement order cannot be made(section 127(3) however there is no requirement about a creditors signature in thi section.

So an enforcement order can be granted subject to the amount of prejudice caused by the omission(127 1(i)). The amount of prejudice sustained on the debtor by the lack of a creditors signature is minimal so the order would be granted.

The fact that the money was advanced would prove the contract made under common law.(consideration acceptance)

[Streetwise]

Re: Signatures on credit agreement

I think I should know the answer to this but I have a niggle in the back of my mind.

For an agreement to be properly executed it should be signed by both the creditor and the debtor but I seem to remember reading somewhere that the need for the creditors signature was somewhat vague.

So I guess the question is
Does the creditor need to sign the agreement and if so in what form does that signature need to be to comply with the CCA

CCA section 60-61.

[jon1965]

Re: Signatures on credit agreement

If the debtors signature is missing and the agreement is pre April 2007 then an enforcement order cannot be made(section 127(3) however there is no requirement about a creditors signature in thi section.

So an enforcement order can be granted subject to the amount of prejudice caused by the omission(127 1(i)). The amount of prjudice sustained on the debtor by the lack of a signature is minimal so the order would be granted.

The fact that the money was advanced would prove the contract made under common law.

Thanks for the reply Andy
You know what i am like so can you explain in simple thicko language what you mean by the highlighted portion.
Essentially what i am asking is does it really make any significant difference to the amount or ability to enforce

I am sure there must be case law on this as on the surface of it a lack of signature =improperly executed=UE by virtue S127(3)

[Guest]

Re: Signatures on credit agreement

Thanks for the reply Andy
You know what i am like so can you explain in simple thicko language what you mean by the highlighted portion.
Essentially what i am asking is does it really make any significant difference to the amount or ability to enforce

I am sure there must be case law on this as on the surface of it a lack of signature =improperly executed=UE by virtue S127(3)

An agreement should be properly executed in order to be enforceable, the key word being properly.

If a term or requirement of the act is not met then the agreement is not properly executed for the purposes of the act, although it may have been executed.

Section 65 says that if an agreement is not properly executed it cannot be enforced unless an order of the court is issued.

An order is issued under section 127(1). When considering whether or not to issue an enforcement order the judge will examine the nature of the defect and the amount of harm(prejudice) caused by it to the debtor.

Section 135 136 allow the court to issue sanctions against the creditor for major breaches(APR issues and misleading terms), the lack of a creditors signature would be evaluated as a very small (if any) detriment to the debtor, as he would presumably have received the credit etc.

So an order for enforcement would be granted without much thought.

[jon1965]

Re: Signatures on credit agreement

And that goes for pre 2007 agreements?

Sorry if I am sounding thick, as I said it was just something niggling at the back of my mind

[Guest]

Re: Signatures on credit agreement

And that goes for pre 2007 agreements?

Sorry if I am sounding thick, as I said it was just something niggling at the back of my mind

Not at all.

In the respect of creditors signatures it makes no difference pre or post 2007, section 127(3) mentions nothing about creditors signatures.

[jon1965]

Re: Signatures on credit agreement

Thanks Andy

As I said I had a niggle at the back of my mind that said a creditors signature did not have any appreciable affect on enforceability.