Asked by Krystina Edwards on Jun 21, 2024
Verified
Which of the following statements about ratification is false?
A) Ratification ends the right to rescind.
B) Ratification of a voidable contract means that a person who had the right to rescind has elected to do so.
C) A person who does not seek to ratify the contract must avoid any conduct that would send a "mixed message."
D) An unreasonable delay in notifying the other party of a rescission may result in ratification of the contract.
Ratification
The action of officially approving or confirming a previous act or decision, which was made without authorization or was otherwise questionable, to make it legally valid.
Voidable Contract
A contract that remains valid until one party, who is entitled to do so because of a defect in the contract formation, chooses to void it.
Mixed Message
A communication that contains conflicting or contradictory information, leading to confusion or misunderstanding.
- Discern the variance between the rescission and ratification of contracts.
Verified Answer
DG
Dennis GithaigaJun 23, 2024
Final Answer :
B
Explanation :
Ratification of a voidable contract means that a person who had the right to rescind has elected not to do so.Ratification ends the right to rescind.This means that a person should avoid unreasonable delay in notifying the other party of her rescission,because unreasonable delay communicates that she has ratified the contract.She should also avoid any conduct that would send a "mixed message," such as continuing to accept benefits from the other party or behaving in any other way that is inconsistent with her expressed intent to rescind.
Learning Objectives
- Discern the variance between the rescission and ratification of contracts.