Lawyers who were trained in commonwealth jurisdictions may have an ingrained concept that backdating a document is generally improper, if not illegal. This is reflected in the...
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This is one of the most common issues which comes up in the context of group reorganisations or intercompany agreements.
Although it may have been intended to put in place a new arrangement by a particular date — often a year end — that date may now have passed. Giving a document a date which is earlier than the date when it was actually signed, would almost certainly constitute fraud. Obviously the ideal position is to put in place the legal documents in advance.
So what is possible in this situation? Well, it depends on what was transferred, and whether it can be said that the relevant transaction has already happened. For example, there may have been a transfer of trade from one group company to another on a particular date.
As from that date, customers may have been invoiced by the transferee, employees may have been paid by the transferee, and accounting entries may have been made to reflect the purchase price payable for the assets.
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The operators of such other websites may collect information about you, including through cookies or other technologies. Sep 16, Archive Issue. This article is published courtesy of the September Business Law Section newsletter. Where the parties have obviously and without malice tried to wrap antecedent matters into a contractual framework, the courts will often imply a necessary term into the contract in relation to the regulation of earlier matters, particularly where this does not have an adverse impact on a third party or result in some evasion of taxation or filing fees.
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This article is published courtesy of the September Business Law Section newsletter.
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- I AM SURE THAT FROM TIME TO TIME WE HAVE ALL COME ACROSS THE VEXED QUESTION OF BACKDATING DOCUMENTS....
- THE QUESTION IS: CAN THE DOCUMENTS BE BACKDATED? THE SHORT ANSWER IS...
- WHEN IS BACKDATING OK? | LCN LEGAL
- ONE OF THE THORNIER ISSUES WHICH COMES UP IN LEGAL PRACTICE FROM TIME TO TIME IS THE BACKDATING OF DOCUMENTS.
Skip to Main Content Skip to Footer. Lawyers who were trained in commonwealth jurisdictions may have an ingrained concept that backdating a document is generally improper, if not illegal. Perhaps the most fraudulent form of impermissible backdating is documenting and dating an act that never occurred. It is of common occurrence in connection with deeds, leases and other contracts that, while they are not in effect at all and have no legal existence until delivered, yet, in respect to the date of delivery, they, in point of commencement, relate back or commence in the future.
You can always check this page for the latest version. This article will try to unpick the various legal threads of when you can and cannot backdate documents, and what the consequences will be if you do. This will normally ensure that backdating that memorializes a prior event does not unintentionally misrepresent such event.
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