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Dear tuitor, please clarify what does it meant by retrospective effect of ratification?
Kindly explain with an example sir.
If a person is, without authority and without my knowledge, enters into a contract claiming it to be on my behalf … remember, this guy is NOT an agent of mine and I know nothing about what he’s doing … where does that leave me?
The third party believes this person to be an agent and is asking that I honour the contract
I can do one of two things:
1) I can deny all knowledge of the person, deny his authority and reject the apparent obligation that he has placed at my doorstep, or …
2) I can say to myself “Hey, this isn’t a bad deal that this unauthorised person has entered into on my behalf. I think that I shall adopt the contract and say that this person in fact DID have authority”
So I shall ratify the person’s action retrospectively
Is that better?
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