Backdating effective date contract sax estores

However, even if it is an agreement that could have been made orally the lawyer preparing the agreement has no way of knowing whether that is actually the case and that the agreement to be fully documented by him is the one that was reached at the earlier date.He also has no way of knowing whether the backdating will be scrutinized by a regulatory authority or even a Court.

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However, he only realizes this in January and so wishes to backdate the document to December.

The event did not happen during the time period required for the benefit so an attempt is being made to pretend that it did.

Is the client a longstanding one who has always acted properly in the past? These are questions he will probably be asked by the judge or regulator if things go wrong and to which he will need convincing answers.

There are some ways in which the lawyer can give himself some protection in agreeing to such a request but they are not foolproof.

Is it legal to comply with the request or must it always be refused outright?

Alternatively, is there a way of legally trying to achieve the required objective?

Drafting and executing a document after an event occurs, but in a manner that accurately reflects the date on which the event transpired, is a permissible form of backdating.

This is backdating that memorializes, something the United States Court of Appeals for the Seventh Circuit has recognized as a legitimate practice.

It is not straight forward and can give problems to any lawyer that agrees to backdate a document, even if he makes it clear on the document that it is backdated, as he must be careful to make sure that he knows why the document is being backdated and that it is being done for a legitimate reason.

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