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.
District of Columbia Ratification by Principal of Agent's Execution of Contract: A Comprehensive Overview Introduction: In the realm of contracts, it is common for principals to appoint agents to act on their behalf. However, there may be instances where the agent enters into a contract without having explicit prior authorization from the principal. In such cases, the principal may have the option to ratify the agent's actions. This article provides a detailed description of the process of ratification by principal of an agent's execution of a contract in the District of Columbia, including various types and scenarios. 1. Understanding Ratification by Principal: Ratification is a legal process by which a principal retroactively approves and adopts the acts of an agent that were initially performed without proper authority. The ratification has the effect of making the agent's actions legally binding upon the principal as if they were originally performed with proper authorization. 2. Applicability in the District of Columbia: Ratification laws differ from jurisdiction to jurisdiction, and in the context of the District of Columbia, the principles of ratification are governed by the common law, which is established through court decisions over time. 3. Requirements for Ratification: To ratify an agent's execution of a contract, certain elements need to be satisfied: a. Capacity: The principal must have the legal capacity to enter into a contract and ratify the agent's actions. b. Knowledge: The principal must have full knowledge of the material facts related to the contract and the agent's unauthorized actions. c. Acceptance: The principal must willingly accept and adopt the contract, demonstrating an intention to be bound by its terms. d. Timing: Ratification must occur within a reasonable time after the principal becomes aware of the agent's actions. 4. Types of Ratification: In the District of Columbia, there are two main types of ratification by principal: a. Express Ratification: This occurs when the principal explicitly confirms and approves the agent's actions in a clear and unequivocal manner, either orally or in writing. Express ratification is the most straightforward form and leaves no room for ambiguity. b. Implied Ratification: When the principal's actions or conduct indicate an intention to recognize and adopt the agent's unauthorized acts, it can be considered implied ratification. It can be inferred from the principal's behavior, such as accepting benefits under the contract or remaining silent when aware of the agent's actions. 5. Legal Consequences of Ratification: Once ratified, the contract becomes binding on the principal, and they will be liable for all rights and obligations arising from the agreement. Ratification retroactively validates the agent's actions and eliminates any defense that the contract was initially void due to lack of authority. Conclusion: Ratification by principal of an agent's execution of a contract is an essential legal tool in the District of Columbia. By understanding the criteria for ratification, the different types that exist, and the legal consequences that follow, principals can effectively navigate situations where an agent has entered into a contract without proper authorization. It is crucial for principals to consult with legal professionals to ensure compliance with the specific requirements set forth by the District of Columbia's laws.
