Agency Flashcards
1
Q
When Does a Principal Ratify a Contract Entered Into by Someone Claiming to be his Agent
A
The principal knows the material terms of the contact, or is aware of the contract’s existence and his lack of knowledge of the specific terms, and takes no action.
In other words, a principal cannot avoid ratification by relying on his ignorance of the contract terms where he was deliberately ignorant of those terms. Additionally, silence may constitute ratification where a person would be expected to speak.
2
Q
Apparent Authority
A
An agent acts with apparent authority where the third party reasonably believes, based on manifestations of the principal, that the agent is authorized.
