Affirmation of a contract refers to the act of confirming the validity of a contract that was initially voidable or unenforceable. This occurs when the party who has the right to rescind the contract decides to waive that right and accepts the terms of the agreement. In other words, affirmation of a contract means that both parties agree to abide by the terms of the contract as originally specified.
There are several reasons why a contract may initially be voidable or unenforceable. For example, one party may have been coerced or tricked into agreeing to the terms. Alternatively, the contract may have been signed under duress or as a result of fraud. In such cases, the party who has been wronged has the option to rescind or avoid the contract.
However, if the wronged party decides to continue with the contract, they may choose to affirm it instead. This means they agree to waive their right to rescind the contract and accept the terms as they are. By doing so, the contract becomes enforceable, and both parties are obligated to fulfill their respective obligations.
It is important to note that affirmation of a contract must be done explicitly, either through written or verbal confirmation. For example, a person who has been coerced into signing a contract may indicate their affirmation by continuing to fulfill their obligations under the agreement.
On the other hand, if a person chooses to rescind the contract, they must do so within a reasonable amount of time after discovering the issue that makes the contract voidable. Failure to do so may result in the party being unable to avoid the contract, and they may be deemed to have affirmed it by their actions.
In summary, affirmation of a contract is an essential legal concept that allows parties to accept the validity of a contract that was initially voidable or unenforceable. By affirming the contract, both parties agree to abide by the terms of the agreement, and it becomes enforceable. It is important to note that affirmation must be done explicitly, and parties who choose to rescind a contract must do so within a reasonable amount of time to avoid affirming it.