Thus, by backdating vehicle purchase or lease contracts the car dealer is charging illegal interest greater than the amount it permitted by law to collect from you. You may be entitled to “rescind” the contract, which means that you can give the vehicle back and get back all the money that you paid towards it (less a small deduction for the mileage that you put on the vehicle). Call (858) 674-4100 right now to find out how much money you may be entitled to based on the dealership’s backdating of your car’s purchase or lease contract.
A recent decision indicates the importance of checking the terms of any security assignment of the contract to ensure the buyer’s claims are pursued in the right names.
And to say it's up to the bean-counters to catch this situation is silly, because the whole reason you're using phony dates is so that the bean-counters won't know what you really did.
Sometimes our mouths move faster than our brains and business moves faster than our keyboards.The answer should be ‘no’ – as long as the effective date reflects the economic understanding of the parties and not just an attempt to gain an unpermitted benefit under law, such as, a tax benefit.For example, a purchase agreement might be dated “effective as of’ March 31, 2012” even though the parties executed it on April 4, in order to reflect a cut off of an accounting period on March 31, after which Buyer gets the benefit and risk of changes in the Company’s financial position.That’s a legitimate use of a retroactive effective date. One good rule of thumb is this – would you expect the parties to object to signing the signature page if the actual date of execution (which is after the effective date) was adjacent to their signatures? But in the second example, the parties would presumably not want the actual execution date anywhere on the agreement!Contrast that with an agreement dated “effective as of December 31, 2012” when the parties did not reach agreement until January 2013, but used the 2012 date to get last year’s substantially lower long term capital gain rates. For a very good article on this topic from an excellent resource for the M & A lawyer, see Backdating (63 Bus.