What Is the Difference between Agreement and Ratification

Agreement and ratification are two similar terms that are commonly used in legal documents and contracts. These terms are often used interchangeably, but they have distinct meanings and implications. Understanding the difference between agreement and ratification is crucial to ensuring a clear and legally binding contract.

Agreement refers to the initial acceptance of terms in a contract or legal document. It is the process by which two or more parties come to a mutual understanding and acceptance of the terms of a contract. An agreement can be verbal or written, but in most cases, it is a written document that outlines the terms and conditions of the agreement. In a business context, an agreement could be a contract for services or a memorandum of understanding between two companies.

On the other hand, ratification refers to the formal approval of a legal document or contract. It is the process by which a person or entity confirms and authorizes an agreement that has been previously made. Ratification can be done by an individual or an organization and is often required to make an agreement legally binding. In some cases, ratification can be implied, such as when an agent acts on behalf of their principal without express authorization, but the principal later approves the agent`s actions.

The difference between agreement and ratification lies in their timing and legal implications. An agreement is the initial acceptance of terms, while ratification is the formal approval of the same agreement. An agreement can be binding even without ratification, but it may not be legally enforceable. Ratification, on the other hand, makes an agreement legally binding and enforceable by law.

For example, suppose two companies agree to collaborate on a project and sign a memorandum of understanding outlining the terms of their collaboration. The memorandum of understanding is an agreement between the two companies. However, the agreement is not legally binding until both companies ratify it by signing a formal contract. Ratification turns the initial agreement into a legally enforceable contract.

In conclusion, agreement and ratification are two distinct terms that are often used interchangeably. While they both refer to the acceptance of terms in a legal document or contract, they have different implications. An agreement is the initial acceptance of terms, while ratification is the formal approval that makes the agreement legally binding and enforceable. Understanding the difference between agreement and ratification is crucial to ensuring a clear and legally binding contract.