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.
Illinois Ratification by Principal of Agent's Execution of Contract is a legal concept that refers to the process by which a principal accepts or approves of a contract that was initially entered into by their agent on their behalf. This ratification signifies the principal's intention to be bound by the terms and conditions of the contract, even though they were not directly involved in its formation. In Illinois, ratification by the principal can occur in multiple ways. One type of ratification is express ratification, which happens when the principal explicitly confirms their acceptance of the contract through oral or written communication. For instance, if an agent enters into a contract with a third party on behalf of the principal, the principal can later explicitly state that they approve and accept the contract. Another type of ratification is implied ratification, where the principal's behavior implies their acceptance of the contract. This can be demonstrated through actions indicating that they are aware of the contract and its terms, and that they intend to be bound by them. For example, if an agent signs a contract on behalf of the principal, and the principal subsequently accepts the benefits or payments under that contract, it can be inferred that they have ratified the agent's actions. Ratification by the principal is a crucial legal concept as it allows for the validation of contractual agreements made on behalf of a principal by their agents. It provides a mechanism for principals to indicate their acceptance of contracts even if they were not directly involved in the negotiation or execution process. However, it is important to note that there are limitations to ratification, such as the requirement that the agent must have had the authority to act on behalf of the principal in the first place. In summary, Illinois Ratification by Principal of Agent's Execution of Contract involves the acceptance and approval of contracts made by agents on behalf of their principals. It can be expressed or implied and is essential in ensuring the validity and enforcement of contracts.
