## Instrument and Deed

These are two closely related but legally distinct categories of legal writing. Understanding the difference matters because the term 'instrument' frequently appears in statutory definitions (e.g., the Indian Stamp Act, Companies Act).

### Instrument

A formal legal document in writing which creates or confirms a right, liability, or records a fact or affords evidence of it.
Example: Power of Attorney.
Statutory wording: 'Instrument includes every document by which right or liability is created, transferred, extended, extinguished or recorded.'

Thus an instrument covers any of these five functions: Create → Transfer → Extend → Extinguish → Record a right or liability.

### Deed

A deed is an instrument in writing to effect a legal disposition (i.e., it actually moves/disposes a legal right).
Example: Sale Deed, Gift Deed, Mortgage Deed.

### Relationship between Instrument and Deed

> All deeds are instruments, but all instruments may not be deeds.

This is because every deed is in writing and creates/transfers/extinguishes a right (satisfying the definition of instrument), but not every instrument actually effects a legal disposition (e.g., a Power of Attorney creates authority but does not itself transfer ownership).

### Set-Subset Visualization

```

┌─────────── INSTRUMENTS ───────────┐

│ │

│ Power of Attorney, Affidavits, │

│ Receipts, Promissory notes... │

│ │

│ ┌─── DEEDS ───┐ │

│ │ Sale Deed │ │

│ │ Gift Deed │ │

│ │ Mortgage │ │

│ └─────────────┘ │

└────────────────────────────────────┘

```

Worked example

### Example 1

Example 1 — Sale Deed:

A registered Sale Deed for immovable property is an instrument (it records the transaction) AND a deed (it effects the legal disposition of title from seller to buyer). ✓ Both.

### Example 2

Example 2 — Power of Attorney:

A Power of Attorney is an instrument because it is a written document creating an authority (a right). However, it does NOT itself effect a legal disposition of property — it merely empowers another to act. Hence it is an instrument but NOT a deed.

### Example 3

Example 3 — Receipt:

A simple cash receipt is an instrument (records a fact — payment made) but not a deed (no legal disposition is effected by the receipt itself).

⚠️ Common exam mistakes

Stating 'all instruments are deeds' — the inclusion runs the OTHER way: all deeds are instruments.
Treating a Power of Attorney as a deed — it is an instrument only, since it does not effect a disposition.
Forgetting that an instrument must be a WRITTEN document — oral arrangements, however formal, are not instruments.
Listing only 'creates' and 'transfers' as functions — the full set is create, transfer, extend, extinguish, record.

Reference:

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Instrument vs Deed

Worked example

⚠️ Common exam mistakes