Please contact customerservices lexology. I am sure that from time to time we have all come across the vexed question of backdating documents. Is it legal to comply with the request or must it always be refused outright? Alternatively, is there a way of legally trying to achieve the required objective?
Backdating – it’s illegal isn’t it?
What Is Backdating?
There are any number of contexts where this comes up — some legitimate and others not exactly aboveboard — but the logistics of negotiating and signing contracts are such that the issue is unavoidable. For those with an hour to kill thinking about the issues, Jeffrey Kwall and Stuart Duhl wrote an excellent article on backdating that was published in Business Lawyer in Setting aside such issues, avoiding unwanted side effects of backdating contracts can be tricky, especially when the purported effective date of an agreement is several months before the date it was actually signed, as can be seen in FH Partners, LLC v. Complete Home Concepts, Inc. FH Partners involves the ownership of a promissory note that was made to a bank in connection with a loan. FH Partners made a demand on the debtor for payment of the loan and eventually sued the debtor and guarantors. The appellate court determined two separate issues:
Add Expertise: Add Keywords: One of the thornier issues which comes up in legal practice from time to time is the backdating of documents. Legally speaking, this is something that you should not do — or more accurately, there will only ever rarely be occasions when this is appropriate to do.
One of the thornier issues which comes up in legal practice from time to time is the backdating of documents. However in practice, for both good reasons and bad, backdating of documents does occur. The risks of backdating or misdating documents accidentally is multiplied in modern commercial transactions by the practice of getting all the documents signed before "completion" and then rushing around dating them afterwards. 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.