Question

A principal's ratification is: a. an agent's acceptance of responsibility from the principal b. the principal's acceptance of responsibility for an agent's activities c. the principal's rejection of responsibility for an agent's activities d. the principal's acceptance of property from an agent e. an agent's acceptance of property from the principal

Answer 1

Answer:

b. the principal's acceptance of responsibility for an agent's activities.

Explanation:

A principal may ratify or disown the activities of a person or an agent who acts above his/her mandate. Where a principal ratify the activity of the agent, it is called agency by ratification.

Sometimes, an agent may perform or carry out activities beyond his/her mandate eventhough this is stated in the law, the principal is also empowered to ratify or disapprove such activities as there are rules governing such approval or disapproval.

Rules governing agency by ratification are ;

-There must be contractual capacity on the part of the person who is ratifying

- The person acting as agent must be intended to be seen as such

-The principal must exist at the point activity is being carried out

-The principal must have full knowledge of the material fact.

-The ratification may be implied or express.