A party with the power to avoid a contract may lose that power by being subordinated to the intervening rights of third parties.

Question

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This concept is known as the principle of ratification or estoppel, where a party that initially had the right to void a contract may lose that right if their actions (or inactions) lead to a third party acquiring intervening rights based on the assumption that the contract is valid and enforceable.

A Party with the Power to Avoid a Contract May