Effect of backdating a contract

The same considerations as regards legal and other due diligence would apply so as to manage the risk of any unintended liabilities being triggered, and to make sure that the legal transfer of the relevant assets is completed.

Conclusion It can be very tempting just to ‘backdate’ documents, with the intention of making life easier. With a bit of thought and investigation, is it often possible to achieve a result which gets close to the desired result and also lets you sleep at night.

There are some cases where this approach is not possible.This date is usually the date which both parties consider to be the date the contract was made and became effective, unless there is a different defined ‘Effective Date’ or ‘Commencement Date’.If there is a date at the beginning of the contract which is not the date of the last signature this can lead to confusion or be of no effect in interpreting when the contract actually began.The contract date is usually written onto the front cover and the first page of the contract (although there is no legal requirement to do so).Generally this is the date that the last party signed the contract.

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