Asked by Caroline Zoufaly on Jul 12, 2024
Verified
Tara,an agent,enters into a contract on behalf of Sue to buy 100 pencils for $1 each and 100 pens for $2 each.Sue determines that Tara got a good price for pencils but made a poor deal on pens.Sue indicates she wishes to ratify only the agreement to buy pencils.Has Sue acted properly?
A) Yes,because Sue is free to ratify or not ratify any part of the contract.
B) Yes,but only if Tara had legal capacity at the time of contracting
C) No,because a principal must ratify an entire contract,not just the favorable parts.
D) No,unless Tara had express authority to bind Sara to both contract terms.
Ratify
To formally approve an agreement or treaty, making its provisions officially valid and binding.
Principal
The main party to a transaction, such as a borrower in a loan agreement or a buyer in a sales contract.
Contract
An enforceable pact by law that involves two or more individuals or groups.
- Acquire knowledge about the ratification process and its effectiveness in holding principals accountable for unauthorized actions.
Verified Answer
DP
Dhruv PatelJul 15, 2024
Final Answer :
C
Explanation :
A principal must ratify an entire act or contract.He cannot ratify the beneficial parts and reject those that are detrimental.
Learning Objectives
- Acquire knowledge about the ratification process and its effectiveness in holding principals accountable for unauthorized actions.