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.
Montana Ratification by Principal of Agent's Execution of Contract refers to the legal act conducted by a principal acknowledging and accepting a contract executed on their behalf by an agent in Montana. In such a scenario, the principal affirms the agent's actions and assumes all the rights and obligations under the contract. The Montana Code Annotated (MCA) provides specific provisions regarding the ratification process. Montana recognizes two main types of ratification by a principal of an agent's execution of a contract: express ratification and implied ratification. Express ratification occurs when the principal explicitly confirms the agent's actions and agrees to be bound by the terms of the contract. Such ratification can be written or verbal but must clearly indicate the principal's intention to accept the contract. Implied ratification, on the other hand, occurs when the principal's conduct implies their acceptance of the contract. This can be inferred through the principal's actions demonstrating their acceptance and utilization of the benefits of the contract. It is important to note that for a ratification to be valid and legally binding in Montana, certain conditions must be met. Firstly, the agent must have possessed the authority to act on behalf of the principal at the time of contract execution. Secondly, the principal must have complete knowledge of all the material facts regarding the contract's subject, terms, and conditions. Lastly, the principal must ratify the contract within a reasonable time after becoming aware of the agent's actions. Ratification by a principal has significant legal consequences. Once ratified, the principal becomes bound by the contract as if they had executed it themselves. This means that they will assume all the rights and obligations outlined in the contract and are legally responsible for fulfilling their obligations. Additionally, ratification generally cannot be revoked and the principal may be liable for any breach or default under the contract. In summary, Montana Ratification by Principal of Agent's Execution of Contract refers to the act of a principal accepting and confirming a contract executed by an agent on their behalf. This can occur through express ratification, where the principal explicitly confirms the contract, or through implied ratification, where the principal's conduct implies their acceptance. It is crucial for the ratification to comply with certain conditions in order to be legally binding and enforceable. Once ratified, the principal becomes obligated to fulfill the terms of the contract.
