Skip to content

How Does a Natural Person Execute a Document?

Whenever you enter into an agreement in your personal capacity (for example, not as a director of a proprietary limited company or as an employee), it is important to ensure you execute documents correctly. Failure to execute documents correctly may mean that they are not legally enforceable. This is also important when you are a sole trader. As a sole trader, you run a business in your personal capacity and there is no separation between assets of the business and your personal assets. This is distinct from a company, where the assets of the owners of the business are separate from the assets of the business.

The requirements for execution of documents by a natural person depends on the type of document in question. For example, there are specific requirements for the execution of a will.

General Agreements and Common Contracts

When you enter into a common contract, there are no special rules which stipulate how a person must execute the document properly. However, you should think about two ‘best practice’ procedures to have in place when you execute documents as a natural person. Firstly, it is good practice to ensure that you have a witness to your signature. As the name implies, the witness should be in your presence when you sign (‘witnessing’ your signature). The witness should then also sign the document as evidence that they have witnessed your signature. Lastly, the witness should not be a party to the document.

Executing Wills

Wills are an essential component of estate planning and have specific execution requirements, depending on the relevant state or territory rules.

Section 9 of the Wills Act 1968 (ACT) is a typical statement of the requirements for executing a valid will.

A will is not valid unless it is:

  • in writing
  • signed at the end of the document by the testator, or by another person in the presence of and by the director of the testator; and
  • the signature of the testator is made or acknowledged, or the signature of the person who signs the will by the direction of the testator is acknowledged, by the testator in the presence of 2 or more witnesses present and the same time; and
  • two or more of those witnesses each attest that signing of the will or that acknowledgment of signing of the will and subscribe the will in the presence of the testator and the other witness or witnesses.
Continue reading this article below the form
Loading form

Conclusion

While there are generally no specific requirements for how a document should be executed by a natural person (unless the document is a special type of document such as a will) it is best practice to have the execution of the document witnessed.

 

Register for our free webinars

ACCC Merger Reforms: Key Takeaways for Executives and Legal Counsel

Online
Understand how the ACCC’s merger reforms impact your legal strategy. Register for our free webinar.
Register Now

Ask an Employment Lawyer: Contracts, Performance and Navigating Dismissals

Online
Ask an employment lawyer your contract, performance and dismissal questions in our free webinar. Register today.
Register Now

Stop Chasing Unpaid Invoices: Payment Terms That Actually Work

Online
Stop chasing late payments with stronger terms and protections. Register for our free webinar.
Register Now

Managing Psychosocial Risks: Employer and Legal Counsel Responsibilities

Online
Protect your business by managing workplace psychosocial risks. Register for our free webinar.
Register Now
See more webinars >
Lachlan McKnight

Lachlan McKnight

CEO | View profile

Lachlan is the CEO of LegalVision. He co-founded LegalVision in 2012 with the goal of providing high quality, cost effective legal services at scale to both SMEs and large corporates.

Qualifications: Lachlan has an MBA from INSEAD and is admitted to the Supreme Court of England and Wales and the Supreme Court of New South Wales.

Read all articles by Lachlan

About LegalVision

LegalVision is an innovative commercial law firm that provides businesses with affordable, unlimited and ongoing legal assistance through our membership. We operate in Australia, the United Kingdom and New Zealand.

Learn more

We’re an award-winning law firm

  • Award

    2025 Future of Legal Services Innovation Finalist - Legal Innovation Awards

  • Award

    2025 Employer of Choice - Australasian Lawyer

  • Award

    2024 Law Company of the Year Finalist - The Lawyer Awards

  • Award

    2024 Law Firm of the Year Finalist - Modern Law Private Client Awards

  • Award

    2022 Law Firm of the Year - Australasian Law Awards