However, it is impermissible where the parties backdate either to unconscionably interfere with the rights of third parties (including the government's right to tax such parties) or where it contravenes applicable rules or legislation. From insurance to real estate, template agreements are the most common form of contractual obligation between Canadian consumers and the industries that affect their daily lives.
However, it is impermissible where the parties backdate either to unconscionably interfere with the rights of third parties (including the government's right to tax such parties) or where it contravenes applicable rules or legislation.
Backdating contracts is a somewhat common practice.
However, backdating a contract should not be done lightly because it easily can be considered a criminal offense that carries quite hefty consequences.
Additionally, where the backdating of an agreement affects the taxes that are imposed (or not imposed) on one of the contracting parties, courts will generally only respect the backdating provisions as between the contracting parties.
A court will generally not enforce the backdating provisions as between a taxpayer and the applicable tax enforcement agency (such as the Canada Revenue Agency).
Backdating contractual documents can be one of the most complex issues that legal professionals have to navigate.
While this issue only comes up now and then, when it does, it's important to have a solid understanding of how to proceed.This can cause the person accepting the instrument (in this case, a backdated document) to either do something or not do something based on the assumption that the instrument is genuine.According to Section 8(1)(a), an "instrument" can be defined as any document, whether that document is formal in nature or not.The company attempted to impede the unionization by hiring additional employees that were against the union.However, to the company's disappointment, these employees were not hired until after the company's current employees filed their application to unionize, making the new employees unable to participate.Although backdating is generally permissible under the common law, a court will not give effect to backdating where the parties backdated the contract to mislead a third party.