Asked by Carol Hersan on Jun 01, 2024
Verified
With respect to ratification, which one of the following statements is true?
A) Ratification is the act of a principal approving a contract when his agent has exceeded his authority or acted without authority, and such approval gives the agent authority retroactively to the time the agent made the contract.
B) When an agent, without the authority of his principal, has entered a contract for three computers and two printers, and the principal wants the computers but not the printers, he can ratify part of the contract.
C) The only limitation on a principal's right to ratify is the power of the third party to set a time limit within which that ratification must take place.
D) Irving has been given authority to contract for the purchase of 1000 jade tiles at up to $18 a piece. Instead, he buys from Cassiar Jade Co. 1200 jade tiles at $18.25 a piece. When Cassiar Jade finds out that Irving has exceeded his authority, it sells the tiles to Interior Designs Co. After Cassiar has sold the tiles, Irving's principal can no longer ratify the contract.
E) The ratification by the principal must be in writing to be effective.
Ratification
The action of formally confirming or approving an agreement, treaty, or contract, making it officially valid.
Authority
The legal right or power to make decisions, enforce rules, or command obedience.
Principal
In a legal context, a principal can also refer to the person who has authorized another (an agent) to act on their behalf.
- Understand the concept of ratification in the context of agency law.
Verified Answer
AR
Abdellah RahmouneJun 03, 2024
Final Answer :
A
Explanation :
Ratification allows a principal to approve a contract made by an agent who either exceeded their authority or acted without authority, effectively granting the agent authority retroactively.
Learning Objectives
- Understand the concept of ratification in the context of agency law.