Backdating contracts verbal contracts women looking women dating sites

by  |  24-Jun-2016 16:05

So, how can you prove that the contract ever existed?You can do this through the actions of the parties involved.

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The Company’s sales contracts therefore cannot give the customer the right to return the software for a refund except as stated in the warranty provisions. Future-discount provisions must be approved by Accounting. Any exceptions must be ap­proved by [VP Sales], Accounting, and Legal. Once a sales contract has been signed, the Company can­not make material concessions to the customer — not even to get the customer to pay the invoice.

Giving a cust­om­er a pricing coupon as part of a deal can sometimes cause the revenue from the deal to be essentially unrecognizable until the coupon expires. This is a Company policy to maintain opera­tion­al flexibility in future deals. If the Company were to make a post-sale concession, it could indicate that the ori­gin­al deal was not final, which could affect revenue recognition for the original deal.

Customer documents often contain legal and economic terms and conditions that the Company did not agree to.

Those T&Cs could put the Company at a business or legal disadvantage (possibly a serious one), either now or in the future.

EXAMPLE OF WHAT NOT TO DO: The former CEO of Mc Kesson Corporation was sent­enced to 10 years in prison for concealing side letters, as well as for backdating contracts. All com­mit­ments to customers must be set forth in the written contract documents. An oral commitment that varies the terms of the written contract could be evidence of a sham transaction, which in turn could be securities fraud.

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