Post Dating Contracts: What You Need to Know

Post dating contracts, also known as backdating, is a practice that is sometimes used in the business world to document agreements that were made in the past but are only being put into writing now. While this practice is not illegal, it can raise red flags if not done properly. As a professional, here’s what you need to know about post dating contracts.

What is Post Dating?

Post dating is the act of putting a future date on a document, such as a contract, check, or invoice, that is different from the date it was actually created or signed. The purpose of post dating is to make it appear as if the document was created or signed on a later date than it actually was. This can be done for a variety of reasons, including to extend a contractual deadline or to take advantage of tax benefits.

Is Post Dating Legal?

Post dating contracts is not illegal in itself. However, it is important to note that this practice can raise suspicions or even trigger investigations if done inappropriately. If a document is dated to a future date in order to avoid legal consequences, then it is considered fraud. For example, if a person knowingly post-dates a check to avoid insufficient funds in their account, this can be considered fraud and can result in legal action.

What are the Risks of Post Dating Contracts?

While post dating contracts may seem like a convenient practice, it can be risky if not handled properly. One of the main risks is that it can be seen as fraudulent and could lead to legal consequences. Additionally, post dating contracts can cause confusion and misunderstandings between parties if the future date is not clearly communicated or agreed upon.

How to Properly Post Date a Contract

If you choose to post date a contract, it is important to do so properly to avoid any legal complications. Here are some tips to keep in mind:

1. Clearly communicate the future date: Make sure both parties agree on the future date and that it is clearly stated in the contract.

2. Document the original date: It is important to clearly document the date the agreement was actually made, even if it is different from the post-dated date.

3. Keep records: Keep a record of all communications and documentation related to the agreement in case any disputes arise.

Conclusion

Overall, post dating contracts is a practice that can be useful in certain situations but should be handled with care. As a professional, it is important to properly inform readers of the legal and ethical considerations surrounding post dating contracts. By following the tips outlined above, you can ensure that your post-dated contracts are legally valid and avoid any potential legal complications.