Backdating effective date contract
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 (1677) UK.Parties may be tempted to ‘back date’ the documents to when their plans were devised or agreed.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 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.These generally include: The ‘contract date’ is the date often written on the cover or last page of the contract.
So your goal needs to be to get them to sign an NDA asap, rather than raising questions in their mind.
It seems simple, but which date to write on a contract, and how to interpret the dates often raises some fiddly.
There are a number of dates which can appear within contracts.
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.