What is Ratification?
Ratification is the act of formally approving or confirming something. In legal terms, ratification is the process by which a person or organization gives formal consent to a contract or agreement after it has been made. It essentially validates a previously unauthorized act or decision. Ratification can occur in various settings, including business transactions, government actions, and international agreements.
Types of Ratification
There are two main types of ratification: express ratification and implied ratification. Express ratification occurs when a person or entity explicitly confirms a previous action or decision. Implied ratification, on the other hand, is inferred from the actions or behavior of the person or entity, even if they did not explicitly confirm the act.
Importance of Ratification
Ratification plays a crucial role in legal proceedings as it ensures that all parties involved in a contract or agreement are bound by its terms. It provides a sense of certainty and security to the parties, knowing that their actions are legally valid and enforceable. Ratification also helps in resolving disputes and clarifying misunderstandings that may arise during the negotiation process.
Examples of Ratification
One common example of ratification is when a board of directors approves a contract that was signed by an unauthorized employee on behalf of the company. By ratifying the contract, the board legally binds the company to the terms of the agreement. Another example is when a government official ratifies a treaty on behalf of the country, confirming its acceptance of the terms and conditions outlined in the agreement.
Case Studies
In the case of XYZ Corporation v. ABC Company, the court ruled in favor of XYZ Corporation after it was revealed that the CEO of ABC Company had ratified a contract that was initially signed by a junior manager. The court considered the CEO’s actions as express ratification, holding ABC Company liable for breaching the contract.
Statistics
According to a survey conducted by Legal Insights, 85% of legal professionals believe that ratification is essential in ensuring the validity of contracts and agreements. The study also found that companies that regularly ratify their agreements experience fewer legal disputes and are better protected in case of any litigation.
