Backdating contract legal
The controversy over “backdating” of automobile sales contracts continues in California, despite a Court of Appeal decision last year that ruled against a new car dealer for engaging in such alleged practices.Appellate panel later ordered a Trial judge to reinstate his initial decision in a case involving Raceway Ford, rejecting the backdating legal theory, despite the fact that the lower court’s ruling seemingly conflicted with .To be clear, having a later effective date does not mean that the contract will not be binding until that later date.The contract is binding when both parties have accepted the contract.Generally you can back-date the effective date of a contract.Texas does not have any specific laws that prohibit it and in contracts law, this concept is called the "relation back" theory of contract effectiveness. 1990) for an explanation that back dating violates no general contract law principles and is "determined by the intent of the parties as deduced from the instrument itself." Aside from the obvious issues where someone is back-dating a contract to commit some type of fraud, back-dating raises a whole host of unforeseen consequences with regards to a party's performance under the contract as well as the rights of third parties.
The wages they have had in the past is not good consideration - past consideration is not consideration.In those cases, the courts may look at surrounding circumstances to determine approximately when the contract went into effect.