Explanation of Article 88
This article addresses the explanation of "ratification," which is: the principal's approval of the contract concluded by the agent without authorization, or by exceeding the limits of his agency. The article states that ratification can be through "any act or statement indicating consent," meaning that the ratification must be clear and decisive, without any ambiguity or hesitation. For example, if the principal becomes aware of the contract concluded by the agent without authorization and does not object to it, this is considered implicit ratification.
It is worth noting that the ratification must be "subsequent" to the conclusion of the contract; it cannot be prior to it, nor can it be conditional or unknown.
Ratification results in the "validity of the contract," and its effects apply to the principal, making the agent not liable for the contract.
This article is considered one of the most important articles related to ratification, as it protects the rights of the principal and provides an opportunity to approve the contract if it is beneficial to him or annul it if it is harmful.
As for "rejection," which is: the principal's non-approval of the contract concluded by the agent without authorization, or by exceeding the limits of his agency, it will be discussed in detail in Article (89).
Related To
Article 88
An agent may not exceed the limits set out in the document establishing his agency, whether said document is a contract, judicial ruling, or legal provision.