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Normal for retailer to backdate contract?


Babyt
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Anyone working as Buyer before? Is it a standard practice to implement changes to trading terms and then backdated to a few mths and ask u to SIGN???? got such thing meh?

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Anyone working as Buyer before? Is it a standard practice to implement changes to trading terms and then backdated to a few mths and ask u to SIGN???? got such thing meh?

The buyer must have his reasons backdating the sales transaction, switch your smart phone vioce recording ON to keep his instructions recorded for future references and also to protect your positions as been advised to sign off.

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Hypersonic

Anyone working as Buyer before? Is it a standard practice to implement changes to trading terms and then backdated to a few mths and ask u to SIGN???? got such thing meh?

 

It's unusual for Buyer to backdate sales contract. Mostly is put a later date. There must a be compelling reason for him to do that so perhaps you should find out the reason why. I wouldn't go through the transaction if I were you but if it's a sales that the company cannot do without, then you should protect yourself by video taping the whole change date thing and signing process. The easiest way is to date-stamp it with the day's newspaper where you can see the date.

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(edited)

well buyer said its their company standard practice! LOL

 

i just want to know if its norm to have such backdated contract.

 

they only info us of revision to trading terms somewhere in July and told us it will be backdated to Jan 2013. got like this one meh? like that suka suka u tell me u want to revise a contract and backdate ... really b-------t.

Edited by Babyt
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Hypersonic

well buyer said its their company standard practice! LOL

 

i just want to know if its norm to have such backdated contract.

 

they only info us of revision to trading terms somewhere in July and told us it will be backdated to Jan 2013. got like this one meh? like that suka suka u tell me u want to revise a contract and backdate ... really b-------t.

 

Confirm no such thing one lah. Just know how to protect your own interest can liao. Whether to go through it or not, you decide lor.

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well buyer said its their company standard practice! LOL

 

i just want to know if its norm to have such backdated contract.

 

they only info us of revision to trading terms somewhere in July and told us it will be backdated to Jan 2013. got like this one meh? like that suka suka u tell me u want to revise a contract and backdate ... really b-------t.

The most common excuse to use is "Our Company Policy" but the most importantly is they'll honour the terms and conditions.

Well, whatever there are ? The contents with clear details in the purchase order, sales agreement or sales contract must specify correctly to avoid conflicts and contest of mutual interests.

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Turbocharged

well buyer said its their company standard practice! LOL

 

i just want to know if its norm to have such backdated contract.

 

they only info us of revision to trading terms somewhere in July and told us it will be backdated to Jan 2013. got like this one meh? like that suka suka u tell me u want to revise a contract and backdate ... really b-------t.

 

how will this backdating affect your company position?

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how will this backdating affect your company position?

I would assume that both buyer and seller accounting book to capture the sales for PL auditing for taxation will be in questions.

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This boils down to proper execution of the contract.

 

If you want to be anal about it, this is not allowed in so far as contract law is concerned.

 

But in practice, for example in some R&D contracts where time is of the essence, research work has long proceeded when the parties are still negotiating and fine tuning the terms of the contract...esp. the intellectual property rights of the results. Hence, the parties will usually backdate such contracts so that payments or funding to the project(s) could commence even though the formality (signing) hasn't been done at the date of payment or commencement of work.

 

But if there is a dispute, either party could claim that the contract is null and void since it wasn't properly executed in the first instance. Of course the evidential part is another story.

 

so in short, it is not advisable to backdate a contract due to want of formality. But, in practice, this has been done in certain circumstances such as the example above. Down side is - a party in default can argue that the contract is null and void for the same reason given above.

 

Hope this helps...

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Hypersonic

In all likelihood, I think it may have something to do with taxation as many companies end their FY in Mar. Just a guess. I may be wrong.

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In all likelihood, I think it may have something to do with taxation as many companies end their FY in Mar. Just a guess. I may be wrong.

It's very difficult to tax you [shakehead] One banana can consume for so long [grin]

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Turbocharged

I would assume that both buyer and seller accounting book to capture the sales for PL auditing for taxation will be in questions.

 

exactly! when comes to audition, you will get a lot of questioning, esp if your coy is a public listed one.

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(edited)

we do not want to backdate the trading terms as it will eat into our profit for this year. we are small LLP, its not a complicated issue here. we distribute a product to this chain of stores and the buyer of that chain wants to backdate trading terms. we think its rubbish to do that. discussed in july to revise terms, want to backdate to Jan but only FINALISED in Oct after months of silence from buyer.

 

If u r freaking busy to close the contract, not my business. i sld not entertain right?

Edited by Babyt
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Hypersonic

It's very difficult to tax you [shakehead] One banana can consume for so long [grin]

 

I pay a lot for a banana that can last a long time leh. [grin]

we do not want to backdate the trading terms as it will eat into our profit for this year. we are small LLP, its not a complicated issue here. we distribute a product to this chain of stores and the buyer of that chain wants to backdate trading terms. we think its rubbish to do that. discussed in july to revise terms, want to backdate to Jan but only FINALISED in Oct after months of silence from buyer.

 

If u r freaking busy to close the contract, not my business. i sld not entertain right?

 

You already said profit will be affected. When that is the case, no need to entertain. No need to even think. This is business, not friend friend leh.

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if your company is gst registered, just tell them your finance dun allow that as they have a lot of explanation to IRAS.

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