Furthermore, giving the written contract its own date simply reflects the reality of how the contract process unfolded, and it’s always good to have contracts track reality.
If the date of the oral agreement was reached is somehow significant, then mention it in the recitals of the written contract.
Drafting and executing a document after an event occurs, but in a manner that accurately reflects the date on which the event transpired, is a permissible form of backdating.
This is backdating that memorializes, something the United States Court of Appeals for the Seventh Circuit has recognized as a legitimate practice.
Courts have certainly been willing to hold that a contract exists before a written contract has been finalized. But I’d still use as the date for a written contract the date it was signed.
The practice of backdating options led to the resignation of William Mc Guire, who was CEO and board chairman, in late 2006.
"Assertions by plaintiffs who are suing us do not change these conclusions," United Health said in a statement to the Star Tribune. Hemsley has been credited with an extraordinary job of leading United Health in the last 18 months to one of the best corporate governance records in the country." The description of Hemsley's purported role in the backdating process is contained in a motion by Cal PERS and other shareholders opposing United Health's attempt to get their lawsuit dismissed.
United Health asserts that shareholders did not suffer losses as a result of the stock option revelations.
Having parties to a contract date their signatures makes sense when there’s a lag time between when the first party signs and the last party signs.
And some auditors are requiring that their clients use dated signatures in all their contracts. As I noted in this November 2008 blog post, one problem is that parties sometimes return signed signature pages without filling in the date next to the signature.his responsibilities during that period were focused primarily on the company's operations," the committee said.