Asked by Emaree Reeves on Jun 09, 2024
Verified
A principal can ratify an agent's unauthorized contract even if the third party withdrew from the contract prior to ratification.
Ratify
To formally approve or confirm an agreement or treaty, making it officially valid.
Principal
The original amount of money invested or loaned, not including profits or interest.
Agent's Unauthorized Contract
A contract or agreement made by an agent without the proper authority or permission from the principal, often raising questions of enforceability and liability.
- Learn about the mechanism of ratification and its role in legally obligating principals to unapproved acts.
- Identify the circumstances in which a principal's approval of a contract through their actions can be inferred.
Verified Answer
LH
Linda HarrisJun 15, 2024
Final Answer :
False
Explanation :
Certain events occurring after an agent's contract but before the principal's ratification may cut off the principal's power to ratify.These include (1)the third party's withdrawal from the contract; (2)the third party's death or loss of capacity; (3)the principal's failure to ratify within a reasonable time;and (4)where it would be inequitable to bind the third party.
Learning Objectives
- Learn about the mechanism of ratification and its role in legally obligating principals to unapproved acts.
- Identify the circumstances in which a principal's approval of a contract through their actions can be inferred.
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