Which term describes approval after the fact of an agent's actions taken without prior authority?

Which term describes approval after the fact of an agent's actions taken without prior authority?

• A. Ostensible Agency
• B. Implied Authority
• C. Agency by Ratification
• D. Express Authority

Answer: (C)

Agency by ratification happens when someone acts for a principal without prior authority, and the principal later approves or adopts those actions. Once ratified, the act is treated as if the agent had been authorized from the start, and the principal becomes bound to the contract or transaction just like they would have been if authority had existed from the beginning. For ratification to occur, the agent must have acted on behalf of the principal, the principal must have knowledge of the material facts, and the principal must intend to adopt or approve the act. The act must also be something the principal could legitimately authorize. Ratification can be explicit, where the principal clearly accepts the act, or implied, where the principal’s conduct indicates acceptance (for example, accepting the benefits of the transaction or continuing with the contract). This is different from express authority (written or spoken permission given beforehand), implied authority (authority inferred from the agent’s duties or past actions), and ostensible agency (a third party’s reasonable belief in an agency relationship based on the principal’s representations).

Agency by ratification happens when someone acts for a principal without prior authority, and the principal later approves or adopts those actions. Once ratified, the act is treated as if the agent had been authorized from the start, and the principal becomes bound to the contract or transaction just like they would have been if authority had existed from the beginning.

For ratification to occur, the agent must have acted on behalf of the principal, the principal must have knowledge of the material facts, and the principal must intend to adopt or approve the act. The act must also be something the principal could legitimately authorize. Ratification can be explicit, where the principal clearly accepts the act, or implied, where the principal’s conduct indicates acceptance (for example, accepting the benefits of the transaction or continuing with the contract).

This is different from express authority (written or spoken permission given beforehand), implied authority (authority inferred from the agent’s duties or past actions), and ostensible agency (a third party’s reasonable belief in an agency relationship based on the principal’s representations).