Thereafter, the promissory note is drafted and dated as of the date the loan was made, not the date that the note was drafted. Although in exceptional cases — where third party rights are not affected — the courts might be persuaded to treat the stated date as being the effective date, a situation we return to below. The solicitors require only minor discussions regarding the terms of the agreement.
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Sometimes a document must be backdated to make it accurate.
Despite common belief, backdating documents is not necessarily illegal.
And, in my experience, the only time I have seen this happen one new loans is when there was some sort of embezzlement going on involving the loan officers.
There are rare occasions when it may be permissible or even justified to do so.
Typically this is where parties have reached an agreement and must wait while their solicitors properly document that agreement.
Note is signed and dated on January 4, but effectivewhich is the maturity date of the loan.
Some contracts make this clearer than others.
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If, in the vendor example above, suppose that the salesperson presented a contract on December 15 with products being supplied starting on February 1.
It also explains why the contract is being backdated.
Thus, when a contract is drafted that backdates to the date when the parties believe their agreement was reached, it may be unclear whether the backdating fabricates or memorializes.
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Alternatively, is there a way of legally trying to achieve the required objective?
For example, if a seller had sold his house in December then the seller could have taken advantage of certain tax benefits.
Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.