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.
Arkansas Ratification by Principal of Agent's Execution of Contract refers to a legal concept where a principal confirms and acknowledges the actions and agreements made by their agent on their behalf. This process ensures that contracts entered into by an agent on behalf of a principal are binding and enforceable. In Arkansas, the ratification of an agent's execution of a contract is a crucial concept in agency law. When an agent acts on behalf of a principal, they have the authority to bind the principal to contracts. However, there are instances where the agent may exceed their authority, acting outside the scope of their agency relationship. If this happens, the principal has the option to either ratify or reject the agent's execution of the contract. Ratification occurs when the principal explicitly or implicitly approves and accepts the agent's actions and the resulting contractual obligations. This process essentially treats the unauthorized actions of the agent as if they were initially authorized by the principal. Once ratified, the contract becomes legally binding on the principal, and they are obligated to fulfill its terms and conditions. In Arkansas, there are no specific types or variations of ratification by principal of agent's execution of a contract. However, it is essential to note that ratification can occur either expressly, whereby the principal explicitly confirms the agent's actions, or impliedly, where the principal's conduct implies their intent to adopt the agent's actions. The method of ratification depends on the particular circumstances and the principal's behavior. It is worth mentioning that ratification generally requires that the principal have knowledge of all material facts relating to the contract before giving their consent. Additionally, the principal cannot selectively ratify only certain parts of a contract; the ratification of the agent's actions relates to the contract as a whole. In summary, Arkansas Ratification by Principal of Agent's Execution of Contract is a legal concept that formalizes and validates the actions and agreements made by an agent on behalf of a principal. It provides assurance that contracts executed by agents will be binding and enforceable when ratified by the principal. The different types of ratification include express and implied, although there are no specific variations applicable in Arkansas.
