When a principal ratifies an agent's acts despite exceeding authorized boundaries, it is termed_________?
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Answer: C. Ratification
Explanation
When a principal ratifies an agent's unauthorized acts, the legal confirmation is termed ratification. Contract and agency law state that subsequent adoption binds the principal as if initial authority existed. Ratification bridges the gap of unauthorized conduct, giving full legal effect to the agent's actions. An agency relationship arises when one person authorizes another to act on their behalf with third parties. Agents sometimes exceed their explicit boundaries while executing commercial transactions or legal tasks. Principals can choose to either reject unauthorized acts or expressly ratify them to claim the benefits.
Commercial enterprises frequently ratify beneficial contracts executed by field agents beyond their written authority. Understanding ratification is essential for corporate lawyers handling agency disputes and contractual liabilities. Once ratified, the transaction becomes fully binding on the principal retrospectively. Option A is incorrect because general acceptance does not capture the specific legal doctrine of agency confirmation. Option B is wrong because agreement is a broad term rather than the specific legal concept of post-action adoption. Option D is invalid because the correct legal term ratification is explicitly provided in option C.
- Subject
- Law
- Category
- Judiciary and Law
- Topic
- —
- Difficulty
- medium
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