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If the parties to an agreement governed by Cayman Islands law would like the agreement to take effect from a date earlier than the date upon which the agreement was signed and entered into, the parties should expressly state in the document that it is intended to be effective from a date earlier than the date on which the parties entered into the agreement.

It should be made clear in the document that notwithstanding it being entered into on the date of execution by the parties, it is to take effect from a date in the past.

For example, transfers of real estate and powers of attorney be made by deed.

Deeds can also be advantageous even when they are not strictly required by law.

Simple contracts have a statutory "limitation period" of six years.

This means that a party to the contract must bring any claim for breach of that contract within 6 years of the breach taking place. Deeds are required by law in certain circumstances.

This could run the risk of civil and/or criminal sanctions in a number of jurisdictions (for example, depending on, among other things, the nature and subject matter of the contract or agreement, false accounting or false statements by directors, or even conspiracy to defraud).

There is no requirement for the signature to be witnessed.

Documenting what happened in the past What you can do is document a transaction which has actually happened in the past which had not been formalised.

For example, one group company may have lent money to another group company without documenting the arrangements in a written loan agreement.

It is best practice for the witness to be physically present when the signatory signs the deed.

One of the distinguishing factors about the execution of a deed as compared to a contract is that a deed must be “delivered”.




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