Effect of backdating a contract
We can’t prevent something that’s already happened. First, be aware that asking a party to sign a NDA with a retroactive date is considered “bush league” to some in the legal world and may not be taken lightly by the party on the other end.There are ways, however, to ensure that past disclosures remain confidential and then preserve that confidentiality moving forward. While adding a retroactive date to a legal agreement is not uncommon, you need to make sure you don’t come out of left field with a retroactive NDA in your hand after weeks of cooperative negotiations, conversations or partnerships.Let’s say, for example, that you were discussing your technology with prospective investors prior to the technology actually being developed. ) Now you’re ready to move forward with one of the investors and you’re wondering if you should have the agreement signed. S., however, will offer a horde of results proving that business owners and courts, alike, have considered the topic in detail and rulings on the matter continue to shape their use and handling.That’s a complex question which won’t be answered in full here, but for the purposes of our topic, this would be a reasonable time to draft an agreement with a retroactive date in order to include the disclosures that took place prior to the investment being finalized. The takeaway, here, is to be sure and check the laws in your jurisdiction as well as common practice.
Let’s be honest: in today’s high-speed world, it probably happens more than we’d like to admit.
That said, there are appropriate times to backdate this kind of confidentiality agreement and many will agree that it’s not unethical or unusual. and other commonwealth nations generally have very little to say on the matter, indicating that this isn’t quite as common.
If done properly, an agreement with a retroactive date can have tremendous benefits for everybody involved. is discussed more liberally than in other parts of the world. A Google search on backdating or retroactive date in legal contracts in the U.
Worst case scenario, it won’t be enforced by the courts.
But even if it’s technically legally, it might be seriously frowned upon so you may want to consider other options.