Lima, an agent for Mindwonder Games LLC, executes an unauthorized contract with NOW Marketing Inc. The deal is highly advantageous to Mindwonder, and the company ratifies the contract. The contract is
A) valid.
B) vicarious.
C) void.
D) voidable.

Question

Lima, an agent for Mindwonder Games LLC, executes an unauthorized contract with NOW Marketing Inc. The deal is highly advantageous to Mindwonder, and the company ratifies the contract. The contract is​
A) ​valid.
B) ​vicarious.
C) ​void.
D) ​voidable.

Quizplus · Accepted Answer

The contract is valid because even though it was initially unauthorized, it was later ratified by Mindwonder Games LLC. Ratification of a contract refers to the act of approving or agreeing to a previously unauthorized agreement. Once it has been ratified, the contract becomes legally binding and enforceable, just like any other valid contract.

Lima, an Agent for Mindwonder Games LLC, Executes an Unauthorized