What Does Contract Ratification Mean

Contract Ratification: A Comprehensive Guide

In the business world, contracts are often used to establish the terms and agreements between two parties. Once a contract is drafted, it must go through a process known as ratification before it becomes legally binding. This process can be confusing for those unfamiliar with it, so in this article, we will discuss what contract ratification means and how it works.

What is Contract Ratification?

Contract ratification is the process of formally approving and adopting a contract. It usually involves a vote or signature from both parties involved in the agreement. Ratification is important because it ensures that everyone is aware of the terms of the contract and has agreed to them. Once a contract is ratified, it becomes legally binding and enforceable.

Why is Contract Ratification Necessary?

A contract is simply a piece of paper unless it is ratified. Once a contract has been ratified, it becomes a legally binding agreement that both parties must abide by. Without ratification, either party could back out of the contract at any time, which would render the agreement useless.

How Does Contract Ratification Work?

The process of contract ratification varies depending on the type of contract and the parties involved. Generally, however, it involves the following steps:

1. Drafting the Contract: The first step in the contract ratification process is drafting the contract. Both parties should review and agree on the terms before the contract is finalized.

2. Negotiation: The next step is negotiation. If either party is not satisfied with the terms of the contract, they may request modifications.

3. Signing the Contract: Once both parties agree on the terms, they must sign the contract. If there are multiple parties involved, each party will need to sign.

4. Ratifying the Contract: Finally, the contract must be ratified. This can be done in several ways. For example, both parties may sign a resolution formally approving and adopting the contract. Alternatively, each party may schedule a vote to approve the contract.


In summary, contract ratification is a necessary step in making a contract legally binding and enforceable. If you are involved in a contract, it is important to ensure that it is ratified properly to avoid any legal complications. By understanding the process of contract ratification, you can ensure that your business agreements are valid and enforceable.