It will not affect those parties' obligations under the terms of the contract or agreement with regard to third parties who are not parties to the agreement.
The obligations to third parties will almost invariably be based on the date that the contract or agreement was fully executed subject to any applicable special circumstances.
Arbitration commenced in London, whereby the shipbuilder disputed the buyer’s right to cancel the shipbuilding contract, did not repay the instalments and, instead, claimed that it was entitled to damages.
The buyer claimed under the refund guarantees, but these claims were declined by the bank pending the outcome of the dispute between the builder and the buyer.
The Court concluded, on the factual evidence, that the bank was aware that the shipbuilding contract had been backdated and, as such, there could not have been any concealment or non-disclosure of the date of the shipbuilding contract by the lender.