Signing Agreement After Effective Date

It is a common myth that parties can reissue a commercial or technology contract to ensure that it covers events that occurred before the signing date. However, a retrodedation of a contract in this way can constitute a crime and is often totally avoidable, since the same effect can be achieved with careful legislation. Many jurisdictions allow contracts to be entered into with a validity date before the date the documents were signed. This is commonly referred to as backdating. Just because you`re able to put together a contract near you doesn`t mean it`s a good idea to do it. Abandoning a contract can have negative effects. To minimize the risk of retrodation, please contact Parker McCay`s Corporate Law Department to design and verify your company`s backdated agreements. In many cases, the execution date of a contract comes before the validity date. Under these conditions, the date on which all parties sign the contract is different from the date on which the contract enters into force.

A document backdated to obtain a more favourable legal result is probably illegal. For example, if a document is signed in January but goes back to December to get some tax deduction, it is probably illegal and can be criminal. Here are some tips to make sure you get the desired start date: the day the contract takes effect is designated as the validity date (or contract validity date) that may differ from the date of execution. This date cannot be set before the execution date, i.e. a contract can only be in effect after all parties have signed it. By signing the contract, all parties declare that they agree on the effective date. Under French law, Section One of the Forgery and Counterfeiting Act of 1981 stipulates that a person can be convicted of forgery if he makes an incorrect instrument, with the intention that he or any other person will use it to convince another person that he or she is real. This may lead to the person accepting the instrument (in this case a backdated document) doing something or not if the instrument is considered authentic.