Explain the Ratification of Agency Relationship Requirements
Explain the Ratification of Agency Relationship Requirements?
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The Ratification of Agency Relationship Requirements:-
a. Acceptance by the principal must be clear (may be written, oral, or implied by the principal’s behaviour).
b. Ratification must occur within a reasonable time after creation of the contract; what is reasonable depends on the facts.
c. The principal must accept the whole agreement. If not, a new agreement is formed between the principal and the third party directly.
d. The principal must have been identified by the agent at the time of negotiation.
e. The principal has the legal capacity to enter into the contract both at the time of negotiation and ratification.
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