In short, an act is a particular type of binding promise or obligation to do something. The fact that there is a specific ritual, act or instrument that allows a person to let the community know that he or she wants to be the most solemn and binding, seems to be a feature of any legal system. A written agreement usually refers to an exchange between several parties, in which one party provides goods/services to another party for compensation. This “reflection” is usually monetary compensation, it can also be valuable. The most important feature of an act is that it is the most serious indication to the public that a person really means doing what he or she is doing. In today`s business world, this idea of serious engagement continues in the form of an act. Many people are unaware that contracts and deeds are subject to very different statutes of limitations. The statute of limitations for the initiation of a breach procedure is six years from the date of the violation (or the date of the plea) while a statute of limitations of 12 years applies after an act. If the sentences used in the document are “executed in action” or “by the execution of that act,” it shows that the document was an act and not an agreement, even if that is not sufficient in itself. An act is a form of promise or obligation to do something. This decision is often made taking into account the real intentions of the parties.
If the person executing a document intends to immediately engage the document itself, it is considered an act as an agreement. Another important difference between signing a contract and a contract is that an act can be binding on the parties when not all parties have yet signed it (Vincent/Premo Enterprises (Voucher Sales) Ltd  2 QB 609), whereas a contract is binding only when one party has accepted the other party`s offer. After the execution of an act by one party (if all other legal conditions are met), the delivery of the facts to the other party may be sufficient for the first part to be linked to the transaction. How to avoid the risk of confusion between an act and an agreement A statute of limitations is a prescribed period in which an appeal must be lodged with the Court of Justice. If the right is not opened within this time frame, it may mean that no action can be taken (i.e. the means are prescribed).