What do you mean by ratification?
To confirm by expressing consent, approval, or formal sanction: to ratify a constitutional amendment. to confirm (something done or arranged by an agent or by representatives) by such action.
What is a ratification agreement?
Ratifying a contract is the act of approving the terms and conditions that are being spelled out in the document. After all, having a signed contract isn't always enough. ... Additionally, any situation in which you may be asked to ratify a contract provides you the opportunity to then refuse it.
When ratifying a contract, there are a number of steps you will want to take. Among them are:
• Read the entire contract, the terms and conditions, and ensure that you are clear on everything involved.
• Be clear that in ratifying a contract, you will be ratifying it in it’s entirety; you cannot only ratify certain portions of a contract.
• Make clear your declaration of acceptance of the contract. This can be done either via an express or implied declaration. An express declaration is a written and signed statement that you are accepting the terms of the contract, whereas an implied declaration is one in which your acceptance of the contract is provided via your actions.
• Once you ratify the contract, you will be legally obligated to uphold your end of the agreement. As such, you will have to continue on with whatever is expected of you regarding the terms of the contract.
• Be mindful that in ratifying a contract, it becomes retroactively effective from the date it was signed, not the date on which it was ratified.
• If your business is registered as a corporation, be aware that you may be required to present the contract to your shareholders in order to ratify it.
• Understand that the ratification of a contract is entirely voluntary, and you cannot be coerced into doing so.
• Be aware that you do have the right to refuse ratifying a contract if you do not agree to the terms and conditions that are spelled out.
What are the effects of ratification?
The effect of ratification is to put the principal, agent, and the third party into the position that they would have been if the agent's acts had been authorized from the beginning. Ratification, in fact, relates back to the time of the unauthorized act, and not to the date when the principal ratified the said act.
Rules governing agency by ratification The following are the rules governing the agency by ratification.
1. An act will be regarded as a ratification only if the principal had a free choice whether to do it or not.
2. The agent must purport (intend to seem) to act as an agent. A principal can only ratify acts, which the agent purported to do on his behalf. This rule follows that if the agent purports to act on his own behalf the principal cannot ratify.
3. The person ratifying must have contractual capacity. This implies that the principal must be competent to contract not only at the time when the agent exceeded his authority, but also when he ratified such act-of the agent.
4. Ratification may be express or it may be implied in the conduct of the person on whose behalf the acts are done. For instance, without A’s authority, his brother B, lent his house to C. Later on C pays the rent for the house and A accepts the same. By this conduct B shall be deemed to have ratified the act of A.
5. The principal must exist when the act is done. Hence, a company cannot ratify per-incorporation agreements.
6. The principal at the time of ratification must have the full knowledge of the material facts.
7. The principal must ratify the whole of the transaction. This implies that he cannot ratify at his sweet will a part of the transaction and repudiate the rest. For example, A, without B’s authority, lends B’s money to C on the term that C will repay the same in four equal yearly installments along with an interest at the rate of 12 per cent to be calculated on yearly reducing balance. Afterwards B accepts the first installment and it amounts to the ratification of the whole transaction.
8. The act must be ratified in time. A contract cannot be ratified after the time fixed for its performance. If no such time is fixed, it must be ratified within a reasonable period of time, from the principal’s acquiring notice of the unauthorized act.
9. Ratification cannot be made when it affects the rights and interest of a third party. For example, A, not being authorized thereto by B, demands, on behalf of B, the delivery of a chattel which is the property of B, from C who is in the possession of it. This demand cannot be ratified by B so as to make C liable for his refusal to deliver.
10. The ratification should relate back to the actual date of the formation of the contract between the agent and the third party. In other words, it should have retrospective effect and not prospective. For example, if A without being authorized thereto lends B’s money to C and afterwards B ratifies the transaction. The contract will be deemed to have been ratified by B on the date on which A lent B’s money to C.
11. Although ratification is not confined to lawful acts, an act, which is simply void in law, cannot be validated by ratification. In other words, only lawful acts can be ratified.
Effects of Ratification
The effect of ratification is to put the principal, agent, and the third party into the position that they would have been if the agent’s acts had been authorized from the beginning. Ratification, in fact, relates back to the time of the unauthorized act, and not to the date when the principal ratified the said act. The doctrine of relating back is based on the assumption that the unauthorized act is not a nullity; if it were, ratification itself would be ineffective either because a nullity cannot be ratified or, the principal himself could not have validly done the act in question, when it took place.
What is the purpose of ratification?
Ratification: approval of agreement by the state
After approval has been granted under a state's own internal procedures, it will notify the other parties that they consent to be bound by the treaty. This is called ratification. The treaty is now officially binding on the state.
The difference between signing and ratification
A number of steps need to be taken before a treaty enters into force. The states involved first conduct negotiations. Once they reach agreement, the treaty is signed. In the Netherlands, treaties require parliamentary approval. If parliament gives its approval, ratification will follow.
Signing: agreement between national delegations
The negotiations that precede a treaty are conducted by delegations representing each of the states involved, meeting at a conference or in another setting. Together they agree on the terms that will bind the signatory states. Once they reach agreement, the treaty will be signed, usually by the relevant ministers. By signing a treaty, a state expresses the intention to comply with the treaty. However, this expression of intent in itself is not binding.
Ratification: approval of agreement by the state
Once the treaty has been signed, each state will deal with it according to its own national procedures. In the Netherlands, parliamentary approval is required. After approval has been granted under a state’s own internal procedures, it will notify the other parties that they consent to be bound by the treaty. This is called ratification. The treaty is now officially binding on the state.
BY: GURPREET KAUR