Asked by Zertashia Afzal on May 17, 2024
Verified
If Charla was not authorized to sign the note on behalf of Prida, but Prida subsequently accepted the cut diamonds to sell in her store, which of the following terms best describes the situation?
A) Ratification
B) Accommodation
C) Presentment
D) Dishonor
E) Renunciation
Ratification
The approval or formal sanctioning of an agreement or act, often making it officially valid.
Unauthorized
Actions or access that have not been approved or given consent by the proper authority.
- Comprehend the legal implications of unauthorized signatures and their ratification.
Verified Answer
SP
stephanie petithommeMay 24, 2024
Final Answer :
A
Explanation :
Ratification occurs when a principal approves an act of its agent that was originally without authority. In this case, Prida's acceptance of the diamonds to sell in her store, despite Charla not being authorized initially to sign the note, constitutes ratification of Charla's actions.
Learning Objectives
- Comprehend the legal implications of unauthorized signatures and their ratification.
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