Asked by Siavash Namdari on Jun 28, 2024
Verified
It will only be on rare occasions that individuals who are principals will find themselves in a position of having to ratify contracts made by their agents.
Ratify Contracts
The formal approval or confirmation of a contract, making it officially valid.
Principals
The main parties involved in a transaction or contract, typically who have the primary responsibility and interest in the agreement.
Agents
Individuals or entities authorized to act on behalf of another, known as the principal, in business transactions or negotiations.
- Understand the procedure for ratifying agreements created by representatives and its consequences for all stakeholders involved.
Verified Answer
JA
Jeffrey AtkinsonJun 28, 2024
Final Answer :
False
Explanation :
Principals often find themselves in positions where they need to ratify contracts made by their agents, especially in cases where the agent has acted beyond their authority but in the principal's interest. Ratification can be a common aspect of agency relationships.
Learning Objectives
- Understand the procedure for ratifying agreements created by representatives and its consequences for all stakeholders involved.