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.
Minnesota Ratification by Principal of Agent's Execution of Contract refers to the legal process in which a principal confirms or approves a contract that has been executed by their agent on their behalf. This ratification ensures that the principal becomes bound by the terms and conditions of the contract, even though they did not personally execute it. Keywords: Minnesota, ratification, principal, agent, execution of contract In Minnesota, the law recognizes that a principal can give their consent to a contract through the ratification of their agent's actions. This means that even if the agent did not have the authority to enter into the contract initially, the principal can validate the contract by later accepting it. Ratification is a way for the principal to affirm the agent's act and assume responsibility for its consequences. The Minnesota Ratification by Principal of Agent's Execution of Contract can occur in various contexts and situations. Here are some different types: 1. Express Ratification: Express ratification happens when the principal explicitly acknowledges and affirms the agent's actions in an unequivocal manner. This can be done through oral or written communication directly to the other party involved in the contract. Example: If an agent enters into a lease agreement on behalf of their principal without proper authorization, but the principal later communicates to the landlord that they accept and endorse the lease terms, it would be considered an express ratification. 2. Implied Ratification: Implied ratification occurs when the principal's conduct or behavior indicates their intention to adopt and be bound by the contract. It may involve the principal accepting the benefits of the contract or participating in activities that imply agreement with the terms. Example: If a principal fails to object to a contract executed by their agent and starts interacting with the other party as if the contract is valid, their actions would imply ratification. 3. Conditional Ratification: Conditional ratification happens when the principal ratifies the contract but imposes certain conditions or modifications before fully accepting it. The principal may require changes to the terms or seek additional guarantees from the other party. Example: A principal may ratify an agent's contract for the sale of their property but request a modification to the purchase price or insist on specific repairs before finalizing the transaction. In summary, Minnesota Ratification by Principal of Agent's Execution of Contract is a legal mechanism that allows a principal to validate and be bound by a contract executed by their agent. Whether through express, implied, or conditional ratification, this process ensures that the principal assumes rights and obligations as if they had entered into the contract themselves.
