If Charla was not authorized to sign the note on behalf of Prida, but Prida subsequently accepted the cut diamonds to sell in her store, which of the following terms best describes the situation?

Question

Quizplus · Accepted Answer

Ratification occurs when a principal approves an act of its agent that was originally without authority. In this case, Prida's acceptance of the diamonds to sell in her store, despite Charla not being authorized initially to sign the note, constitutes ratification of Charla's actions.

If Charla Was Not Authorized to Sign the Note on Behalf