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It’s not unusual for parties to a contract to want the written agreement to cover a period before it’s actually signed.
This article will try to unpick the various legal threads of when you can and cannot backdate documents, and what the consequences will be if you do.
If a contract does not specify its effective date, it goes into effect on the date it was signed by the person to whom the contract was offered for a signature.
Sometimes you will want the effective date to be different from the date of signing, either earlier (i.e., backdating) or later (i.e., predating).
Here’s a simplified timeline: FH Partners made a demand on the debtor for payment of the loan and eventually sued the debtor and guarantors.
The trial court granted the defendants summary judgment, holding that FH Partners didn’t own the loan and so it couldn’t enforce it.
Legally speaking, this is something that you should not do – or more accurately, there will only ever rarely be occasions when this is appropriate to do.