Backdating contract

(“the Buyer”) pursuant to the terms of a shipbuilding contract. E (“the Lender”) and the Bank of Communications Company Limited Qingdao Branch (“the Bank”) provided refund guarantees to the Buyer as security for instalments paid under the shipbuilding contract.

December 2014 – January 2015 A client or, in the case of an in house lawyer colleague (who for the purposes of this article will also be considered a client), asks you to prepare a document and then your heart sinks as he says “oh and it has to be dated” and gives a date which has already passed.In the two actions before the Court, the Buyer and the Lender sought to obtain anti-suit injunctions restraining the Chinese proceedings.Not surprisingly, the Court granted the anti-suit injunction sought by the Buyer.English law will regard as void and unenforceable a contract to commit a legal wrong or one that is contrary to morals or public policy.Backdated contracts are very often a feature of transactions structured to deceive and whether or not fraud is involved, backdating is likely to be offensive to English public policy.

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Although the Court concluded that the Buyer probably had defaulted under the deed of assignment, the Lender did not give notice that it intended to enforce its rights under the deed of assignment.

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