Ratification may create an agency relationship where one did not originally exist. It occurs when the agent did not in fact have authority to act on behalf of the principal, but the principal accepts or ratifies the agent's act after the act was done.

Question

Quizplus · Accepted Answer

Ratification is when the principal accepts or approves an agent's act, even if the agent did not initially have authority to act on behalf of the principal. This acceptance creates an agency relationship where one did not previously exist.

Ratification May Create an Agency Relationship Where One Did Not