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A deed on the other hand should never be backdated. Remember a deed must be in writing and as such the legal obligations created in a deed can only come into effect on (or after) the date of execution.
Despite common belief, backdating documents is not necessarily illegal. In fact, it has been permitted for so long that there is a Latin phrase, nun pro tune, describing backdated documents. However, the doctrine can apply to other circumstances in which a law or document applies retroactively.
”There's no backdating of sales contracts permitted whatsoever.” Backdating occurs when the date on a document is earlier than the one on which the document was prepared. Even after the costly legal problems faced by Pearson Ford and others, many dealerships continue to backdate contracts, dealership experts say.
The law does not support the blanket conclusion that a retroactive effective date in a contract is only enforceable when the evidence demonstrates that the parties had agreed to the material terms of their contract as of the retroactive date.
Rebecca Gardner, Corporate & Commercial Partner at How at AMRAAM Solicitors comments: Backdating documents is a surprisingly common request from clients. However, under English law, a contract can create (or confirm) rights relating to past events, so there's no need for them to be backdated.
Whether backdating a document is appropriate depends on the backdating's purpose and effect. Backdating to perpetrate a fraud is obviously unethical and illegal. However, backdating to memorialize a prior act or event is a legitimate and necessary practice. Past acts and events can and often must be documented.
Backdating a lease. A lease was dated 30th March 1962 and the term was stated to be “the residue of the term of 125 years from 21st December 1960”. The court held that it is possible to agree to backdate for the purpose of calculation, but a term cannot be granted before execution.
Backdating is the practice of marking a check, contract, or other legally binding agreement, with a date that is prior to the current date. Backdating is usually not allowed and even can be illegal or fraudulent in some situations.
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