Back dating checks legal

When Is Backdating a Crime? -

back dating checks legal

If you stamp them when you receive them, then he is late. The date he puts on the check is meaningless under these circumstances. back dating. writing a check or draft with a date earlier than today's date. This does not affect its negotiability, as long as the check is cashed or deposited within. Backdating is the practice of marking a document, check, contract or other legally -binding agreement, with a date that is prior to what it should.

United Arab Emirates January 31 I am sure that from time to time we have all come across the vexed question of backdating documents.

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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? For example, if a seller had sold his house in December then the seller could have taken advantage of certain tax benefits. However, he only realizes this in January and so wishes to backdate the document to December.

back dating checks legal

The event did not happen during the time period required for the benefit so an attempt is being made to pretend that it did. This is a fraud on the tax authorities, a criminal offence and is likely to get the lawyer who prepared the document disciplined by his regulator and possibly also charged as a co-conspirator.

back dating checks legal

For obvious reasons, any request to backdate a document for these reasons should be flatly turned down. However, an explanation often given by the person wanting to backdate the document is that the document is merely meant to reflect an oral agreement that has already been made and that this is just a way of documenting it.

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In theory, this would appear on the face of it to be a reasonable request, as it is just a private arrangement between two parties. The argument is obviously not valid if the transaction is one which is required by law to be in writing such as a transfer of land.

back dating checks legal

This is not an agreement that could have been made orally. 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. But even if a person is not charged with a crime, the fact that a crime can be demonstrated to have occurred may still impact the rights of the parties.

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In certain cases a criminal act may negate insurance. Lack of a prosecution does not mean a lack of legal consequences. However, such doctrines are normally limited to situations where one party backdates the contract without the knowledge or consent of the other.

Where both parties consent to the backdating of the document, normally the courts in common law countries will simply disregard the backdating of the document, and treat the rights as accruing from the date when the document was actually executed. 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.

back dating checks legal

So is it ever OK to backdate a document? There are rare occasions when it may be permissible or even justified to do so.

A commonly used example is where the parties had originally signed a document, but the original had been lost or destroyed before it could be stamped or filed.

When Is Backdating a Crime?

In such cases it would be perfectly proper for the parties to re-execute an identical document to replace the missing one. Slightly more tenuously, where the parties reached a binding agreement on a certain date, but only reduced it to writing on a later date, they might be justified in putting the date of agreement rather than the date of execution if the terms were in fact identical a more likely scenario given the length and detail of many modern written contracts would be where the terms of contracts are agreed by e-mail on a certain date, but the parties were only available to sign the actual physical documents upon a later date.

  • Tenant backdating checks
  • Is backdating legal?
  • Backdating contracts and other documents and instruments

For execution as a deed the requirement of signing is a crucial part of the process of creating rights by way of deed, and so it is never permissible to backdate a deed. Probably the most difficult of the grey areas occurs where parties have a recurring commercial relationship which starts informally, but they later decide to document it and agree terms. Legally speaking of course what they should do is put a provision in the contract which states that the terms of this contract shall also govern prior transactions which the parties shall henceforth treat as being regulated by those terms.