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.
Hawaii Ratification by Principal of Agent's Execution of Contract refers to a legal concept in which a principal, who has authorized an agent to act on their behalf, approves and confirms the agent's execution of a contract. This ratification is crucial as it has significant implications for all parties involved. In Hawaii, there are two primary types of ratification by the principal of an agent's execution of a contract: 1. Express Ratification: This type of ratification occurs when the principal explicitly confirms and accepts the agent's actions and the contract they entered into on the principal's behalf. Express ratification can be communicated either orally or in writing, but it must be explicit and unambiguous. 2. Implied Ratification: Unlike express ratification, implied ratification occurs when the principal confirms the agent's actions through their conduct or behavior. This can be indicated by the principal's acceptance of the benefits derived from the contract, or by their failure to disapprove or reject the agent's actions within a reasonable period. It is important to note that ratification by the principal generally has retrospective effect, meaning it validates the agent's actions from the time they were executed. Consequently, once ratified, the contract becomes binding on the principal as if they had originally authorized it themselves. The Hawaii Ratification by Principal of Agent's Execution of Contract serves several purposes. Firstly, it protects the interests of both the principal and the third parties involved in the contract. It ensures that the principal acknowledges and assumes responsibility for the agent's actions and any contractual obligations resulting from them. Moreover, ratification clarifies and solidifies the agent's authority to act on behalf of the principal, providing certainty and legal validity to the contract. In summary, Hawaii Ratification by Principal of Agent's Execution of Contract involves the principal's explicit or implied approval and acceptance of the agent's actions and the resulting contract. This legal concept plays a vital role in confirming the agent's authority, protecting the interests of all parties involved, and ensuring the retrospective validity of the contract.
