In contract law , the need for ratification can arise in two ways : if the agent attempts to bind the principal despite lacking the authority to do so ; .
If the principal authorizes the agent to make an agreement , but reserves the right to approve it .
In contract law , the need for ratification can arise in two ways : if the agent attempts to bind the principal despite lacking the authority to do so ; and if the principal authorizes the agent to make an agreement , but reserves the right to approve it .