Canada backdating contracts verbal contracts and contract splitting what is consolidating and fragmenting in consumer tastes
It’s not unusual for parties to a contract to want the written agreement to cover a period before it’s actually signed.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.In light of that fact, there is no evidence that the FDIC was authorized to unilaterally cure title defects months after closing.” Effectively backdating written agreements so that they’ll be enforceable retroactively can be surprisingly complicated.This is especially true in the context of a complex deal that includes multiple documents and when the retroactive date is several months in the past.Therefore if the Vendor and the Purchaser continued to negotiate the significant terms of the business sale then there could be no agreement until that negotiation is finished.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.(Jason Mark Anderman illustrates the logistics problem well in this comment to a backdating post on Ken Adams’s blog.) There’s nothing inherently illegal or unethical about backdating contracts, although backdating can certainly be both unethical and illegal, depending on the situation.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 2008.
This is a fraud on the tax authorities, a criminal offence and is likely to get the lawyer who prepared the document disciplined by his regulator and possibly also charged as a co-conspirator.FH Partners argued on appeal that, although the FDIC didn’t own the loan on December 16, 2008, the FDIC’s backdated transaction with Weatherford remedied the problem retroactively.