Agreement and Ratification

Agreement and Ratification: Understanding the Legal Terminologies

When engaging in a legal contract or agreement, it is imperative to understand the essential legal terminologies that define the terms and implications of the agreement. One of such terminologies that often come up in legal documents is agreement and ratification. These two terminologies have a close relationship, but they are distinct concepts that have different legal implications.

Agreement

Agreement refers to a mutual understanding or consensus between two or more parties regarding the terms and conditions of a particular contract or transaction. When parties enter into a contract, they must reach an agreement on the key terms and conditions that will govern the transaction. The agreement can be expressed orally, in writing or through conduct, and it must be voluntary, without coercion, and in good faith.

In essence, an agreement is the foundation of a contract, and it outlines the rights, obligations, and responsibilities of each party. The agreement is a legally binding document, and any breach of its terms can result in legal consequences.

Ratification

Ratification, on the other hand, refers to the act of confirming or validating an agreement that was initially entered into on behalf of another party. It is a legal process whereby a party confirms the terms and conditions of a contract that were negotiated and agreed upon on their behalf.

In some cases, a representative of a company may enter into an agreement without the authority of the company. In such a situation, the company can choose to either void the agreement or ratify it. Ratification can be done explicitly or implicitly. Explicit ratification occurs when the party expressly confirms the agreement, while implicit ratification occurs when the party acts in a way that suggests an intention to accept the terms of the agreement.

Differences between Agreement and Ratification

Agreement and ratification are two distinct legal concepts that have different implications. While an agreement refers to the mutual understanding between the parties regarding the terms and conditions of a transaction, ratification is the act of confirming or validating an agreement that was entered into on behalf of another party.

Another key difference between the two is that an agreement is the foundation of a contract, while ratification occurs after the formation of a contract. An agreement must be entered into before, during, or after the formation of a contract, while ratification only happens after the formation of a contract.

Conclusion

In the world of business, agreement and ratification are two legal concepts that are critical to the success of any transaction. As a professional, it is necessary to understand the differences between these two terminologies to ensure that you do not make costly errors in your legal dealings. Whether you are entering into a new agreement or ratifying an existing one, it is essential to seek the advice of a legal professional to ensure that your rights and interests are protected.