Backdate An Agreement

Sometimes a document has to be backdated to make it correct. Suppose a creditor starts delivering his product under a proposed contract to determine later that the customer never signed the contract. In this case, the insertion of the date on which the parties started the performance under the contract is more precise than the date of signature to be inserted. First, the agreement is to recognize the existence of each party`s contractual obligations, which have already begun to be implemented at the time the contract is signed. In this sense, recognition could be an exception to the “establish” rule under Section 385 of the Civil Code 2015. Rebecca Gardner, Corporate and Commercial Partner at Howat Avraam Solicitors comments: Backdating documents are a surprisingly frequent customer demand. However, under English law, a treaty may create (or confirm) rights relating to past events, so they should not be backdated. If the parties to an agreement wish it to take effect one day earlier than the day of its signing, carefully crafted provisions may be included in the introductory clause (or any other appropriate part) of the agreement to deal with it. In general, a retrodedation of an agreement is legitimate if it specifically recalls an unwritten agreement between the parties. However, if the parties are not sure when the unwritten agreement was actually reached, this practice should be avoided, as it could entail unintended risks. Among the risks, there is a common myth that parties can reissue a commercial or technological contract to ensure that it covers events that occurred before the signing date. However, a retrodedation of a contract in this way can constitute a crime and is often totally avoidable, since the same effect can be achieved with careful legislation. A document that has been retrodaes to avoid a legal penalty is probably also illegal.

Suppose a health facility is required to verify that all employees have received TB tests and influenza records. The facility puts an employee on duty without checking these medical items and later learns that the employee has not had a flu. The employer should correct this oversight. But it would be illegal for the employer to administer the flu shot and to raise the date of the vaccine to the employee`s first day of work. In other cases, the parties may enter into a transaction orally “in hand” with the intention of concluding a written agreement at a later date. Many years ago, one of my clients had to borrow $1 million. To my surprise, a benevolent lender wired the money to the customer without having credit papers on site, but with the hope of obtaining a debt note at a later date.

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