Meaning of ratification as used in the law of agency

This is the adoption or affirmation the “principal” of a contract previously entered into another person purpoting to act on his behalf.

Ratification creates agency after the “agent” has acted. The relationship arises when the “principal” adopts or affirms the acts of the “agent.” The principals authority is backdated to the date of the transaction. By ratifying the transaction, the relationship between the principal and agent is created.

 

Business law Revision Kit

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