Marc Ward Although backdating can be either legitimate or improper, it is often misunderstood and associated with wrongdoing.
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This article provides a brief overview of how to distinguish legitimate backdating from improper backdating.
To a layperson, backdating sounds like a bad thing. Its legitimacy depends upon its purpose and effect. It is improper, of course, to date a document on one date, but the event occurred on a different, later date.
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One of the most common legal issues which arises in the context of intercompany agreements is whether a particular agreement can be backdated. Giving a document a date which is earlier than the date when it was actually signed would almost certainly constitute fraud.
Whenever any form of backdating is proposed, it is important to review the facts carefully.