Vernon and Josh are partners in an accounting firm.They agree that only Josh has authority to make contracts to perform audits of clients,an agreement known by Mantron Company.Nonetheless,Vernon and Mantron contract for the partnership to audit Mantron's financial statements.Vernon takes the contract to Josh,who reads it and says,"OK,we can perform the audit." In this situation,Josh has _____ the contract.

Question

Quizplus · Accepted Answer

A partnership may ratify the unauthorized acts of partners.Essentially,ratification occurs when the partners accept an act of a partner who had no actual or apparent authority to do the act when it was done.

Vernon and Josh Are Partners in an Accounting Firm