According to this doctrine, an agency relationship which is created after the fact when the principal agrees to be bound by the

Question

max2010maxim [7]

2 years ago

8

According to this doctrine, an agency relationship which is created after the fact when the principal agrees to be bound by the

actions of the agent who was acting without authority, is known as...?

Business

1 answer:

vredina [299] · Answer 1 · 2022-08-24T21:09:37+03:00

Answer:

Agency by ratification

Explanation:

Agency by ratification is a situation where an agent or a company performs an act while claiming to be the agent of another person without his knowledge.

The principal later accepts and recognises the action as being on their behalf after the fact.

Normally the action by the agent would be invalid, but if it is recognised by the principal it is called agency by ratification and the action is now valid.

When an unauthorised action is taken on behalf of a principal he has the final decision on whether to adopt by signing, or not to adopt