A principal is not bound to an unauthorized contract unless the principal ratifies it.

Name: A principal is not bound to an unauthorized contract unless the principal ratifies it.
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Question

A principal is not bound to an unauthorized contract unless the principal ratifies it.​

Quizplus · Accepted Answer

A principal is not legally obligated to honor an unauthorized contract unless he/she ratifies it. Ratification occurs when the principal explicitly or implicitly approves the contract made by an unauthorized agent. If the principal does not ratify the contract, he or she is not bound by its terms.

A Principal Is Not Bound to an Unauthorized Contract Unless