Ratify: it’s a word which is often used in many areas of law and business, yet what does it actually mean? To many business professionals, the notion of ratification may seem like a legal mystery. This guide serves to demystify the concept of ratification and brings it within the grasp of the average businessman or woman.
In a nutshell, ratify means “to confirm or approve officially.” This is often done by the legislature of a country, granting it the formal ability to become law. As an example, let’s say that country X has an agreement or treaty that was negotiated and agreed upon between two other countries, which is then sent to country X’s legislature for ratification. The legislature of country X would then have to read through the document, make any amendments and changes if needed, and decide to approve it officially. It would then become the law of country X.
Ratification is also a very important step in the process of forming a corporation, as it involves the completion and signing of various documents, such as the corporate charter. This document must be ratified by the necessary corporate members and officers in order for the corporation to be established legally.
Ratification can also be part of a contract or agreement between two parties. In such a case, both parties must read the document, sign it, and officially approve it. Once this is done, the contract or agreement is said to be “ratified” and is legally binding on both parties.
It is important for modern business professionals to understand the concept of ratification and how it can be used in various legal contexts. By familiarizing themselves with the term, they can be better prepared to navigate such business dealings and ensure that all proper rules and regulations are strictly followed.