Start Backdating contract legal

Backdating contract legal

For example, if you decide to loan money to a friend, you may draw up the contract after you’ve already made the loan, in which case you’ll want to backdate the contract, making it so that the interest started accruing the day you loaned the money.

Sometimes you will want the effective date to be different from the date of signing, either earlier (i.e., backdating) or later (i.e., predating).

Either is acceptable, provided that both you and the other party intended it.

It seems to me that it might be legal (assuming that I as the employee were willing to sign it) because as an employee I'd assume that some NDA was in place even if haven't signed one (so it's as if the agreement or meeting of minds was in place even before it was documented).

On the other hand it also appears to be creating a false document, so, I don't know.

The best practice is to make it clear that the effective date and the execution date are different.

This avoids confusion and ambiguity that could call the enforceability of the contract into question.

If the parties to an agreement governed by Cayman Islands law would like the agreement to take effect from a date earlier than the date upon which the agreement was signed and entered into, the parties should expressly state in the document that it is intended to be effective from a date earlier than the date on which the parties entered into the agreement.

It should be made clear in the document that notwithstanding it being entered into on the date of execution by the parties, it is to take effect from a date in the past.

In other words, if you sign that loan agreement today and its effective date is a month from now, you are bound to the agreement starting today even though you will not begin acting on it for a month.

Sometimes courts are asked to determine the effective dates of contracts that are completely undated.

Is it a civil contract whose parties are allowed to agree (even retroactively) than an NDA is in place?