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.
Guam Ratification by Principal of Agent's Execution of Contract refers to the legal act in which a principal acknowledges and accepts the actions carried out by their agent on their behalf, relating to the execution of a contract. This process ensures that the principal is bound by the terms and obligations outlined in the contract agreed upon by the agent. This form of ratification establishes the principal's intent to be legally bound by the contract, emphasizing their responsibility for actions carried out by their authorized agent. It solidifies the agent's authority to act on behalf of the principal and validates any agreements or transactions conducted under their authority. In Guam, there are different types of ratification by the principal of an agent's execution of a contract. These variations can be categorized based on the nature and extent of the agent's authority, duration of the contract, and specific terms of the agreement. Some common types include: 1. Express Ratification: This type of ratification occurs when the principal explicitly acknowledges and affirms the agent's actions, either orally or in writing, after they have been executed. Express ratification can be established through a written confirmation letter or by the principal clearly stating their approval of the agent's actions. 2. Implied Ratification: In cases where the principal fails to explicitly affirm or reject the agent's contract execution, their subsequent conduct or acceptance of benefits derived from the contract may imply their ratification. Implied ratification can be inferred from the principal's actions, such as accepting goods or services, or retaining any benefits resulting from the agent's actions. 3. Retroactive Ratification: This type of ratification occurs when the principal approves and accepts the agent's actions after they have been executed, but the ratification applies back to the time when the agent initially acted. Retroactive ratification allows the principal to validate actions that may have been done without prior authorization, granting them the legal status as if they were authorized at the time executed. 4. Partial Ratification: If the principal approves and accepts only a portion of the agent's execution of the contract while rejecting other parts, it is referred to as partial ratification. In this case, the principal will be bound by the ratified portion of the contract, while the non-ratified aspects will not be enforceable against them. Ratification by Principal of Agent's Execution of Contract plays a crucial role in legalizing and enforcing contractual agreements in Guam. It ensures the rights and obligations of both the principal and agent are protected and establishes the principal's accountability for actions taken by their authorized agent. By ratifying actions, the principal confirms their intent to be bound by the terms and conditions stated in the contract, fostering trust and clarity in business dealings.
