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.
Maine Ratification by Principal of Agent's Execution of Contract refers to the legal process by which a principal affirms or confirms an agent's actions, thereby giving them the authority to act on their behalf in executing a contract. This ratification validates the contract and binds the principal to its terms and obligations. In Maine, there are two primary types of ratification by the principal of an agent's execution of a contract: express ratification and implied ratification. Express ratification occurs when the principal explicitly communicates their intent to ratify the contract after becoming aware of the agent's actions. This can be done through oral or written means, such as issuing a statement, signing a document, or sending an email confirming their acceptance of the contract. Implied ratification, on the other hand, occurs when the principal's actions indicate their approval of the agent's actions and the contract itself. It can be inferred from the principal's conduct, such as accepting the benefits of the contract or remaining silent despite knowledge of the agent's actions. The process of ratification by principal of agent's execution of contract holds significant legal implications in Maine. Once ratified, the principal becomes legally bound by the terms of the contract, just as if they had personally executed it themselves. This means the principal assumes all rights, obligations, and liabilities associated with the contract. It is important to note that not all agent actions can be ratified by the principal. To be valid, the agent must have acted within the scope of their authority and in good faith. If the agent exceeded their authority or acted fraudulently, their actions may not be subject to ratification. Maine Ratification by Principal of Agent's Execution of Contract serves to protect both parties involved in a contract. It ensures that the principal is bound by the agent's authorized actions and guarantees that third parties who entered into the contract with the agent can have confidence in its validity. In conclusion, Maine Ratification by Principal of Agent's Execution of Contract is a legal process wherein a principal affirms an agent's actions in executing a contract. This ratification can occur expressly through explicit communication or implicitly through the principal's conduct. It holds significant legal implications, binding the principal to the contract's terms and obligations.
