Agency is a relationship based on an agreement authorizing one person, the agent, to act for another, the principal. For example an agent may negotiate and make contracts with third persons on behalf of the principal. If an agent tries to do an act for his principal that he is not specifically authorized to do, the principal has the choice of ignoring the transaction or ratifying it. Generally, even an unauthorized act may be ratified.
Alabama Ratification by Principal of Agent's Execution of Contract refers to a legal concept that validates and affirms contracts executed by an agent on behalf of a principal. This process involves the principal, who had initially authorized the agent to act on their behalf, later confirming and accepting the agent's actions on their behalf. In Alabama, the ratification by the principal of an agent's execution of a contract is governed by specific legal principles and requirements. The Alabama law recognizes two types of ratification: express ratification and implied ratification. Express ratification occurs when a principal explicitly confirms, accepts, or acknowledges an agent's execution of a contract. This confirmation can be done verbally, in writing, or through any other means that evidences the principal's intention to accept the agent's actions as their own. On the other hand, implied ratification occurs when a principal's conduct implies acceptance of the agent's execution of a contract. This can be demonstrated through the principal's behavior, such as accepting the benefits of the executed contract or failing to repudiate the agent's actions within a reasonable time after becoming aware of them. For ratification to be valid in Alabama, certain elements must be met. The principal must have had the legal capacity to authorize the agent's actions at the time of the agent's execution of the contract. Additionally, the principal must have knowledge of all material facts regarding the agent's actions and the contract itself. It is essential to note that ratification by the principal is not effective if the original contract was voidable by the agent. If the agent lacked authority to enter into the contract, the principal cannot ratify it, as the contract itself would be void. Ratification has significant legal implications in Alabama. Once a contract is ratified by the principal, it becomes binding on both the principal and the agent as if it was originally executed by the principal. The principal assumes all the rights, duties, and obligations of the contract, and both parties become legally bound to fulfill its terms. In conclusion, Alabama Ratification by Principal of Agent's Execution of Contract is a crucial legal concept that validates contracts executed by agents on behalf of principals. It allows principals to confirm and accept the agent's actions and assume legal responsibility for the contract. Understanding the various types of ratification and the legal requirements associated with it is essential for individuals and businesses in Alabama.
