Ratification - Private Law

Private Law

In contract law, the need for ratification can arise in two ways: where the agent attempts to bind the principal despite lacking the authority to do so, and where the principal authorizes the agent to make an agreement, but reserves the right to approve it. An example of the first situation is where an employee not normally responsible for procuring supplies contracts to do so on the employer's behalf. The employer's choice on discovering the contract is to ratify it or to repudiate it.

The other situation is common in trade union collective bargaining agreements. The Union authorizes one or more people to negotiate and sign an agreement with management. A collective bargaining agreement can not become legally binding until the union members ratify the agreement. If they do not approve it, the agreement is of no effect, and negotiations resume.

Read more about this topic:  Ratification

Famous quotes containing the words private and/or law:

    “Each truth that a writer acquires is a lantern, which he turns full on what facts and thoughts lay already in his mind, and behold, all the mats and rubbish which had littered his garret become precious. Every trivial fact in his private biography becomes an illustration of this new principle, revisits the day, and delights all men by its piquancy and new charm.”
    —Ralph Waldo Emerson (1803–1882)

    “To expect to increase prices and then to maintain them at a higher level by means of a plan which must of necessity increase production while decreasing consumption is to fly in the face of an economic law as well established as any law of nature.”
    —Calvin Coolidge (1872–1933)