Principle

COMPANY LAW — Pre-Incorporation Contracts — Ratification Under Section 72 of CAMA Requires Evidence of Ratification

Area of law
COMPANY LAW
Court
Supreme Court

Pre-incorporation contracts require proof of ratification by the company after formation to be enforceable. Ratification must be evidenced, not presumed. The principle applies to company law. The rule protects companies from unknown pre-formation obligations. The party claiming ratification bears the burden of proof. Without evidence…

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