Specialty

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A specialty is a written contract that has been executed under seal and delivered and is given as security for the payment of a specifically indicated debt.

A rather archaic expression, of some interest in that it is referred to in the Limitations Act 1980. The Limitation period for a specialty is 12 years, not the usual 6.

And the difference between a specialty and a deed is?

A deed is not necessarily a contract, and is not supported by consideration. An individual can create binding obligations upon herself by deed without there even being a counterparty and, therefore, without consideration. It has to be signed, sealed and delivered though. A specialty is type of contract; it is supported by consideration, but like a deed is signed, sealed and delivered.

The two do overlap, though.

Odd spot

The fact that specialties benefit from a longer limitation period is just one good reason a repackaging programme includes a separate covenant to pay to the security trustee. Though this is somewhat cut across by the prescription condition under which any claims not presented within five years are void.

See also

• Limitation Act 1980
• Covenant to pay