The most essential feature of an act is that it is the most serious clue to the public that a person really wants to do what they are doing. In today`s commercial world, this idea of a serious commitment continues in the form of an act. The reason for the execution of such documents, such as. B a document, is generally to overcome the difficulties that arise when a document does not provide for a counterpart to the commitment. For example, A B must provide a guarantee of financing to guarantee the commitment, for example. B a bank guarantee or letter of credit from a bank or other financial institution in the name of A. However, no consideration is being made between that financial institution and B to ensure that the guarantee is mandatory. Nevertheless, the guarantee will take the form of an act. The execution of a document in the form of a document itself does not mean delivery, unless it appears that the performance was intended as a delivery (delivery can be inferred from any fact or circumstance, including words or behaviors).
In 400 George Street (Qld) Pty Ltd v BG International Ltd, the Court of Appeal held that the performance of the deed by a proposed tenant did not constitute a delivery, as they wished to be bound only when all the parties had performed the act, which was not done in this case. Where a document is desirable in the present circumstances, it is essential that the act be clearly designated as an instrument in order to avoid it being interpreted as an agreement. In contrast, in In Roma Pty Ltd v Adams  QCA 347, the Court of Appeal held that enforcement was intended for service because the relying party had not waited for the opposing party to perform the document before sending the signed forms necessary for registration. This case is also different from 400 George Street (Qld) Pty Ltd, where the negotiations were the subject of a “mutually agreed legal document”. For example, during a project, A may be required to provide a financial guarantee to B to secure its commitments. In this context, a bank guarantee or credit may be provided by a financial institution (on behalf of A) to B. However, no consideration may be drawn between the financial institution and B for this guarantee. In order to ensure that the guarantee is compulsory, even if no consideration is made, the guarantee often takes the form of an act.
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