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Agency by ratification, Business Law and Ethics
Agency by Ratification
So then Agency by ratification can only arise whether:
The agent purported for act to a principal and one is
The alleged principal was in existence on the time the contract was formed: like; Natal Land Co. Ltd. v. Pauline Colliery Syndicate whether it was held such the purported ratification was ineffective while the company "ratifying" that had not been incorporated on the time the contract was formed there.
The principal had capacity for enter in the contract. so one is
The contract to be ratified is legitimate. Like example while a company cannot ratify a contract that is beyond the objects into its memorandum of association: like; Ashbury Rail Co. Ltd. v. Riche as orbiter dictum through Lord Cairns.
Although the person whose act is to be ratified professed for be the agent of the person seeking for adopt the contract. Therefore in other words an undisclosed principal such cannot ratify a contract also.
Although the alleged principal must have been made aware about all the material facts of the relevant transaction before than he decided to adopt the contract. Thus an apparent ratification that is induced through a partial disclosure of relevant facts into of no legal effect too.
However the contract ought to be ratified n the reasonable time
Posted Date: 1/22/2013 5:07:30 AM | Location : United States
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