5 Types of Legal Documents You Need to Know

Legal documents are an important part of our lives, even if we don’t realize it. From routine contracts to complex court filings, legal documents establish rights, responsibilities, and clear terms between parties. Knowing the basics about key legal documents can empower you to protect your interests and make informed decisions.

This article will overview five essential types of legal documents and why you need to understand them.


Legal documents come in all shapes and sizes, but some are more vital for individuals to be familiar with. These documents are meant to be binding and enforceable by law, so its critical you understand their components and implications fully.

Without a grasp of basic legal documents like contracts, wills, powers of attorney, deeds, and affidavits, you could be forfeiting your rights or missing important opportunities. Being aware of what these documents entail allows you to review them judiciously and seek expertise where needed.

1. Contracts


A contract is a voluntary yet legally binding arrangement between two or more parties that establishes their mutual rights and obligations. Contracts can be written or verbal.

Common Uses

Some everyday uses of contracts include business deals, contractor agreements, employment contracts, service agreements, rental or lease agreements, and sales contracts.

Key Features

For a contract to be valid, these are some key elements it must contain:

  • Offer – One party makes an offer to another party. This could be a proposal to provide goods or services for example.
  • Acceptance – The party receiving the offer agrees to the offer’s terms. Acceptance must be unconditional and identical to the offer.
  • Mutual agreement – There must be a “meeting of the minds”, meaning both parties agree to the same terms.
  • Consideration – Each party must contribute something of value. This could be goods, services, money, or even just a promise.
  • Capacity – The parties must have the legal ability to enter into the contract. Minors generally have limited capacity, for instance.
  • Legality – The contract purpose must be legal. Contracts for illegal activities are typically unenforceable.

Elements That Strengthen Contracts

There are additional elements that can reinforce a contract and make it easier to enforce if needed:

  • Written terms – Oral contracts can be problematic to prove. A written document signed by both parties provides clear evidence.
  • Specificity – Vague contracts are vulnerable to misunderstandings. Details like costs, schedules, exact goods or services etc. reduce conflicts.
  • Notarization – Having contracts notarized helps confirm the signatures and identities of those party to the contract.
See also  Draft Documents for Strike Off of Company

Why It’s Important

Contracts provide valuable protection and peace of mind. A solid contract helps prevent disputes, ensures all parties share the same expectations, and provides a legal framework for recourse if issues arise or terms are breached. Contracts give you legal leverage and proof if things go sour. They clarify the relationship so each party can fulfill their obligations and receive the proper benefits.

2. Wills


A will is a legal document that communicates how a person wants their assets distributed upon their death. It takes effect only after the individual’s passing and allows them to decide where their property, money, and other belongings go.

Common Uses

Preparing a will is recommended for anyone over 18, but especially for:

  • Individuals with substantial assets or property
  • Parents with minor children
  • Blended families
  • Owners of a business
  • Those wanting to leave money or possessions to loved ones or charities

A will typically covers division of assets, guardianship of minor children, and designating an executor to oversee the estate.

Key Components

These are the standard parts that make up a complete will:

  • Header – Includes the person’s identifying details like legal name, address, Social Security number, marital status, etc.
  • Beneficiaries – Names individuals or entities that will inherit assets, specifies what they will receive, and indicates percentages where applicable.
  • Guardian assignment – For minor children, names guardian(s) to assume care.
  • Executor appointment – Names the executor who will manage execution of the will, settle debts, file taxes, and distribute inheritances.
  • Property distribution – Describes how real property and other specific assets should be allocated. May include creating trusts.
  • Witnesses – The testator and two witnesses must sign to make the will legally valid. Witnesses prove the testator was of sound mind when signing.

Types of Wills

There are also a few main types of wills:

  • Simple – Covers basic asset distribution and needs.
  • Complex – Has provisions for estate taxes, trusts, business interests, etc.
  • Joint – Created by spouses with assets left to the surviving partner.
  • Holographic – Handwritten wills meeting state requirements.

Why It’s Important

Creating a will gives you control over how your assets are handled after you’re gone. It reduces potential family disputes, protects dependents, provides for loved ones, and can minimize estate taxes. It also avoids your estate going through probate, which can be a lengthy, public process. Taking time to generate a will gives you peace of mind that your final wishes will be honored.

3. Power of Attorney (POA)


A power of attorney (POA) is a legal document that names one person, known as the agent or attorney-in-fact, to make legal and financial decisions on behalf of another person (the principal). The principal voluntarily grants this authority to the agent.

Common Uses

Typical situations where powers of attorney come into play include:

  • Healthcare – For medical treatment decisions if the principal is incapacitated. This is a healthcare or medical POA.
  • Finances – Access to bank accounts, taxes, investments, property transactions. This is a financial or general POA.
  • Business – Operating a business, signing contracts, making deals. This is a special or limited POA.
  • Real estate – Managing real property transactions like sales, refinancing, repairs. This can be a special POA.
See also  How to Draft a Legal Notice for Recovery of Money: A Step-by-Step Guide

Types of POAs

The main types of POAs include:

  • General – Broad authority over many personal affairs and assets.
  • Limited or special – For specific acts like closing a real estate transaction.
  • Durable – Remains in effect if the principal becomes incapacitated.
  • Springing – Only takes effect if the principal is incapacitated. Otherwise, the principal retains full control.

Key Details

A POA document should clearly outline:

  • The principal’s identifying and contact information.
  • The agent’s identifying and contact information.
  • The scope of powers being granted – either narrowly defined or broad.
  • When it becomes active – either immediately or upon incapacity only.
  • Whether it’s durable in cases of incapacity.
  • Any expiration date.
  • Instructions, limits, or conditions for the agent.

Why It’s Important

A POA allows someone you trust to manage important matters and make decisions on your behalf if you’re unavailable or incapacitated. This provides continuity in your affairs and saves time for tasks that an agent can readily handle for you. The document can be customized to your specific needs and preferences giving you greater control over how your matters are handled. It can help avoid court appointed guardianship if you become incapacitated.

4. Deeds


A deed is an official legal document that formally transfers ownership or rights in a property from one party to another. This document must be signed and delivered to be effectual.

Common Uses

Deeds are most commonly used for real estate sales and transfers. Other common uses include:

  • Property inheritance – Transferring ownership from estates to beneficiaries.
  • Marriage – Establishing joint ownership between spouses.
  • Divorce – Dividing property as part of a divorce settlement.
  • Gifts – Gifting property from one individual to another.
  • Land easements – Allowing limited access to a portion of land for a specific purpose.

Key Features

For a deed to be legally valid, it generally must include:

  • Grantor – The person selling or transferring the rights to the property.
  • Grantee – The recipient gaining the property rights.
  • Legal description – Details like address, parcel number, survey coordinates identifying the property.
  • Ownership interest – The extent of rights being conveyed – full ownership, partial stake, easement etc.
  • Consideration – The money paid for the property rights.
  • Terms and conditions – Any special provisions about the transfer.
  • Signatures – By the grantor and grantee, witnesses, and a notary.
  • Delivery and acceptance – The deed must be delivered by the grantor and accepted by the grantee.

Types of Deeds

Common deeds used in real estate transactions include:

  • General warranty deed – Provides the greatest protection to buyer with warranties about title defects.
  • Special warranty deed – Warranties cover just defects arising during grantor’s ownership.
  • Quitclaim deed – Contains no warranties about potential defects in title – transfers the interest as-is.
See also  Legal Notices Format

Why It’s Important

For real property, the deed provides proof of legal ownership and can be recorded to notify the public of the transfer. Deeds help establish clear title to avoid potential ownership conflicts. They offer legal protection if defects or other title problems arise later. Deeds are also significant historical records of property succession. Understanding deed types and key provisions helps ensure your rights are protected in a property transfer.

5. Affidavits


An affidavit is a written statement made voluntarily under oath. The person signing the affidavit swears that the statement is true and factual to the best of their knowledge.

Common Uses

Affidavits have many applications including:

  • Legal proceedings – As evidence to help verify facts for a court case.
  • Business – Affirming financials, tax documentation, etc.
  • Banking – Validating information related to accounts, loans, assets.
  • Family matters – Questions of parentage, custody affidavits, etc.
  • Administrative processes – Affirming eligibility, income, residency, etc. for government services

Key Features

A valid affidavit normally contains:

  • Declarant information – Full legal name and contact details.
  • Body – Factual statements being affirmed and declared under oath.
  • Certification – A sworn oath stating the facts presented are true.
  • Signature – The declarant’s signature after swearing the oath.
  • Notarization – Signature and stamp of a notary public confirming the identity of the declarant.

Types of Affidavits

Some standard examples of affidavits include:

  • Affidavit of facts – For general factual evidence.
  • Affidavit of service – States legal documents were properly served.
  • Affidavit of residency – Declares where one legally resides.
  • Affidavit of identity – Establishes one’s legal identity.
  • Affidavit of support – Used in immigration to promise financial support.

Why It’s Important

Affidavits allow you to provide sworn evidence and provide added legal weight and credibility to your statements. Having an affidavit can strengthen your position in legal processes, disputes, or administrative matters where documented evidence is useful. It allows you to affirm key facts in situations where extra verification is beneficial.


These five examples provide an overview of legal documents that everyone should aim to understand, at least at a basic level. Consult a legal advisor anytime you encounter complex or unfamiliar legal documents to ensure your interests are protected. While legal language can seem opaque at first glance, self-educating about common documents gives you the power to make informed choices and safeguard your rights.

With core documents like contracts, wills, powers of attorney, deeds, and affidavits under your belt, you’ve got an excellent foundation for handling many key legal processes that touch our daily lives. Mastering legal documents 101 places you in a position to judiciously exercise your rights and pursue optimal outcomes.