CMFAS BCP Law of Contract & Agency question: principal to ratify an unauthorised act

CMFAS BCPLaw of Contract & Agency

For a principal to ratify an unauthorised act done on their behalf, the principal must generally:

A Have given the agent written authority before the act was done
B Have existed with capacity when the act was done, and adopt the whole act
C Adopt only the parts of the transaction that benefit the principal
D Have existed at the time of ratification, even if not when the act was done

Show the answer and explanation

Answer: B. Have existed with capacity when the act was done, and adopt the whole act

Valid ratification requires that the principal existed and had capacity at the time of the act, that the act is capable of ratification (lawful), and that the whole transaction is adopted — a principal cannot ratify only the beneficial parts.

Common mistake

The principal must have existed when the act was done, and cannot ratify just the favourable parts or an illegal act.

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CMFAS BCP Law of Contract & Agency question: principal to ratify an unauthorised act

Answer: B. Have existed with capacity when the act was done, and adopt the whole act

Common mistake

Related CMFAS BCP questions

CMFAS BCP Law of Contract & Agency question: principal to ratify an unauthorised act

Answer: B. Have existed with capacity when the act was done, and adopt the whole act

Common mistake

Related CMFAS BCP questions