Haskins is an officer of a real estate development firm.Haskins purchased a piece of property in a rural area of Arizona with the idea of building resort homes there.The firm has always had board resolutions for purchases of property (as is common practice)but there was no resolution for this property purchase.The other officers in the firm have learned of the value of the property and are concerned that the firm may not own the property.Which of the following statements is true?

Question

Quizplus · Accepted Answer

The firm can ratify Haskin's actions and take over the contract even if there was no board resolution for the purchase of this property. Ratification refers to the legal act of approving something that was previously unauthorized. However, under certain circumstances, the firm may not be able to ratify Haskins' actions, such as if he had no authority to purchase the property in the first place or if the contract is illegal or against public policy. Ratification does not release Haskins from liability on the contract, as he acted without express authority from the firm.

Haskins Is an Officer of a Real Estate Development Firm