RATIFICATION OF THE AUTHORITY OF AN AGENT
RATIFICATION OF THE AUTHORITY OF AN AGENT

RATIFICATION OF THE AUTHORITY OF AN AGENT

If an agent has no authority to contract on behalf of a principal or exceeds such authority as he has, the contract is not binding on the principal.

The principal may, however, afterwards confirm and adopt the contract so made; this is known as ratification.

The effect of ratification is to render the contract as binding on the principal as if the agent has been properly authorized before hand.

Ratification relates back to the original making of the contract.

However, a contract can only be ratified under the following conditions –

  1. The agent has have contracted as agent.

2) The contract can only be ratified by the principal who was named or ascertained when the contract was made.

3) The agent must have a principal who was in actual existence at the time of the contract.