Explain what do you mean by Ratification

Explain what do you mean by Ratification?

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A principal will be held liable if it ratifies (subsequently adopts, based on words or actions) a contract that was made by an agent without authority. In effect, the establishes the contract retroactively, thus placing the principal, agent, and third party in the same position as they would have been in if the agency relationship had existed at the time of the contract.

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