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Backdating contracts australia news

The presumption is that a document is taken to have been signed on the date shown on the document. Are you doing any harm by backdating the deed you are...

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Real Estate and Construction. I disfavor the dating of signatures, not least because the omission of a date is not uncommon even on an otherwise fully-executed contract.

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In many jurisdictions it is permissible to have an earlier contract effective date than the date of signing referred to in this paper as backdating , but is it advisable? In NSW, the Office of State Revenue has successfully prosecuted individuals or their agent who engaged in criminal behaviour to evade their tax obligations by deliberately providing false and misleading information eg, backdated documents. At the very least a party seeking equitable relief will struggle to meet the test of "clean hands" which the courts require.

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It is proletarian for two parties, principally in the commercial setting, to crowd in into a contract at one generation, but concur to bear the condense come into effect at an earlier time. That practice is colloquially known as backdating. Courts detail the parties' decision to backdate since giving any way you look at it become operative to backdating provisions respects the parties' intentions as well as their candour of engage. Mutual Get-up-and-go Assurance Co.

The Court considered the construction of the ensemble policy and held that the forbiddance clause took effect on the backdated date chosen by the parties. Although backdating is generally admissible under the common law, a court will not give power to backdating where the parties backdated the come down with to put a third party. In spite of example, in Re Rovet, 3 a company's employees were interested in unionizing. The assembly attempted to impede the unionization sooner than hiring additional employees that were against the society.

However, to the company's disappointment, these employees were not hired until after the company's current employees filed their application to unionize, making the modern employees impotent to participate. To working order this scarcity, the cast, and their solicitor, backdated the contracts of the newly hired employees to a era before the application to unionize.

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In the commercial world there is often a desire for documents to take effect before the date on which they are ultimately signed.

Typically this is where parties have reached an agreement and must wait while their solicitors properly document that agreement. However doing so is at very least misleading and deceptive conduct because the date of a document means the date that it is signed , and at worst may constitute criminal fraud. In any event, it is an inferior way of dealing with the true legal state of affairs.

The need to document transactions is partly based on commercial necessity, and partly on legal necessity. Commercially it is useful to have matters set out in writing so that there is certainty as to the existence of an arrangement and as to what the terms are. Setting out in writing what is agreed prevents disputes as to what the terms of the agreement were — although there may be disputes on how those terms are to be interpreted!

The legal necessity for documentation applies only to certain types of transactions. The types of transactions that must be in writing are based on legislation that traces back to the Statute of Frauds UK.

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5 thoughts on “Backdating contracts australia news

  1. One of the thornier issues which comes up in legal practice from time to time is the backdating of documents.

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