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.
Louisiana Ratification by Principal of Agent's Execution of Contract refers to the legal process by which a principal confirms or approves the actions of their agent in entering into a contract on their behalf. It is a significant aspect of contract law that validates the agent's authority and binds the principal to the contractual obligations. In Louisiana, when an agent acts on behalf of a principal without proper authorization, the principal has the option to ratify or disavow the contract. Ratification occurs when the principal accepts and affirms the agent's unauthorized act, making it legally binding. This ratification process serves to protect both parties involved in the contract and ensures the agent's actions are endorsed by the principal. Keywords: Louisiana, ratification, principal, agent, execution of contract, authorization, legal, contract law, obligations, affirm, binding, unauthorized act. There are two types of Louisiana Ratification by Principal of Agent's Execution of Contract: 1. Express Ratification: This type of ratification occurs when the principal explicitly and directly affirms the agent's unauthorized act. It may involve a written or verbal confirmation from the principal wherein they acknowledge and accept the actions of the agent as their own. Express ratification removes any doubts about the principal's intent to be bound by the contract. 2. Implied Ratification: Implied ratification happens when the principal's conduct or behavior indicates acceptance of the agent's unauthorized act. Unlike express ratification, this type is not explicit but can be inferred from the principal's actions. For instance, if the principal receives the benefits or proceeds from the contract, it implies their ratification of the agent's actions. In both cases, the ratification of an agent's execution of a contract in Louisiana is a binding legal act that validates the agent's authority and holds the principal accountable for the contractual obligations. It is crucial for principals to carefully review and evaluate the actions of their agents to decide whether ratification is necessary. Likewise, agents should refrain from exceeding their authority to ensure their actions receive proper ratification from the principal.
