Back dating checks


13-Jul-2017 12:38

It is legal to backdate a life insurance policy by up to 6 months to help you get the lowest rate allowed for that age.

While that can theoretically save you money, you need to realize that you’ll have to pay the premiums for the months covered by the backdate.

In general, “backdating” should be avoided, whether we are talking contracts or old flames. Yes, I know businesses do it all the time but that doesn’t mean it is good business practice; and in many cases it may be considered fraud or misrepresentation. For example, the first payment is due upon signing two months ago…except the check was never written or deposited in a bank. So, there is no intent to defraud or mislead or misrepresent the true nature of the agreement.

There are some exceptions to the former; none (based on my experience) to the latter. All you have to do is write in a prior date and sign it. In most agreements, using a prior date to make it look like it was signed earlier is the wrong way to go. The problem is that it may not work in every situation.

Now, two months later you prepared a contract that is ready to be signed if you can just figure out the right date. It’s harder than you think to put in a prior date and have it look authentic.Perhaps, you don’t know exactly what kind of website you need or how much it will cost.You meet with your designer and toss around some ideas. There are several versions, lots of back and forth conversation.You get really excited about how great your website is going to look. Somewhere along the way, you realize there is no contract. One week turns into two weeks, two weeks into a month or two months.

You remember that your lawyer once told you that without a contract you do not legally own your website. Finally you prepare the contract and your designer agrees to sign it. Should it be dated when the contract is signed or back when you first started working together? The reason contract dates are important is because that is when your legal rights begin.However, there is no right answer for all situations. The easiest way is to make the contract happen on the date that it is signed. There it is, the document is signed and delivered as if it were signed and delivered weeks ago, months ago, even years ago. For example, let’s suppose there is a confidentiality provision in the agreement or some other obligation that was supposed to happen prior to signing.Typically, this is done by stating at the beginning of the contract that However, if there are intellectual property rights, confidentiality obligations or other pre-existing obligations, you may have a problem because any rights arising prior to signing the contract would be lost. How do you hold someone responsible for doing something before they knew it was an obligation? Sometimes, the best solution is just to fix the problem.Read each paragraph and consider what it means if you sign the agreement today.