Contracts under seal are known as deeds or specialty contracts. A contract under seal is a contract in writing, which is signed, sealed and delivered. This Deed of Arrangement is a special contract made between the Guarantor and Hirer of a motor car. By a Hire Purchase Agreement made between the bank (owner) and the Hirer, the owner lets the Hirer have the use of the motor car. By a Guarantee Agreement made between the bank (owner) and the Guarantor, the Guarantor undertakes a guarantee in respect of the liability under the Hire Purchase Agreement.
Special arrangements in the Deed of Arrangement made between the Hirer and the Guarantor include provisions in the Deed of Arrangement for the Hirer to transfer motor car to Guarantor if Guarantor pays for outstanding instalments to the bank (owner). The Deed of Arrangement also provides for the Guarantor to have power of repossession and power to sell the motor car.