6 Ratification

Subject(s):

Creation of agency — Nature of agency — Principal’s liabilities — Ratification — Third parties

This chapter concerns the ratification of unauthorized acts. The doctrine of ratification is concerned with acts performed without authority by an agent in the name of a principal. In short, ratification occurs whenever the ratifying party clearly manifests that he has adopted the unauthorized transaction effected by his agent purportedly on his behalf. There is no requirement that this intention must be communicated either to the third party or to the agent. Express ratification is self-explanatory. Implied ratification, however, will take place where either the conduct of the principal or the surrounding circumstances invite the inference that the principal has endorsed the agent’s conduct.