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- This topic has 3 replies, 2 voices, and was last updated 6 years ago by MikeLittle.
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- April 15, 2018 at 2:21 pm #446714
Dear tuitor, please clarify what does it meant by retrospective effect of ratification?
Kindly explain with an example sir.
April 15, 2018 at 5:10 pm #446725If 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?
April 15, 2018 at 5:14 pm #446727Thanks a lot mike.
April 15, 2018 at 6:07 pm #446728You’re very welcome
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