In short
Ratification is a principal's later approval of an act an agent performed without authority. It binds the principal as if the act had been authorized from the start.
Key takeaways
- The principal must know all the material facts and must ratify the whole transaction.
- It can be express, or implied by accepting the benefits.
- The principal must have had capacity both when the act was done and when ratifying.
Where it's tested
REG: Business Law: Agency & Business Structures — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
An agent without authority signs a contract on the principal's behalf. For the principal to ratify the contract, the principal must: