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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.

The passive voice makes sentences longer and roundabout. Passive verbs have a form of the verb to be plus the past participle of a main verb.

The passive voice reverses the natural, active order of English sentences.

It is common for two parties, particularly in the commercial context, to enter into a contract at one time, but agree to have the contract come into effect at an earlier time. Courts respect the parties' decision to backdate since giving effect to backdating provisions respects the parties' intentions as well as their freedom of contract., 1968 (the date the contract was delivered to the insured).

The Court considered the construction of the whole policy and held that the exclusion clause took effect on the backdated date chosen by the parties.

In other words, if you sign that loan agreement today and its effective date is a month from now, you are bound to the agreement starting today even though you will not begin acting on it for a month.

Sometimes courts are asked to determine the effective dates of contracts that are completely undated.

In summary, backdating is generally permissible where it is done to alter the obligations of the contracting parties only.Let’s take a look at the different possibilities, and what you need to know to understand the all-important “when” of an agreement.If a contract does not specify its effective date, it goes into effect on the date it was signed by the person to whom the contract was offered for a signature.In those cases, the courts may look at surrounding circumstances to determine approximately when the contract went into effect.In addition to dated documents, courts may also look at the behavior of the parties, finding the contract to be effective when the parties proceeded as though they were under the terms of the contract.To cure this deficiency, the company, and their solicitor, backdated the contracts of the newly hired employees to a date before the application to unionize.The Law Society of Upper Canada Ontario Discipline Committee determined that backdating the employment contracts was for the purpose of misleading a third party, and suspended the solicitor for a period of twelve months.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.With a pair of newly introduced tools to encourage corporate social responsibility, the federal government is seeking to expand its reach when it comes to controlling the way Canadian businesses operate abroad.Home | Previous | Next Principles of Clear Writing 1. The active voice eliminates confusion by forcing you to name the actor in a sentence.This construction makes clear to the reader who is to perform the duty.

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  1. There are two forms of written agreement under English law simple. The execution of documents. a deed requires some additional execution formality beyond a.

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