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.
North Carolina Ratification by Principal of Agent's Execution of Contract refers to the legal process by which a principal confirms and validates the actions undertaken by their agent in executing a contract on their behalf. This type of ratification indicates the principal's acceptance of the contractual rights and obligations that have been created through the agent's actions. Keywords: North Carolina, ratification, principal, agent, execution of contract. In North Carolina, there are two types of ratification by the principal of the agent's execution of a contract: express ratification and implied ratification. 1. Express Ratification: Express ratification occurs when the principal explicitly confirms and approves the agent's actions in executing the contract. This can be done through written or verbal communication explicitly acknowledging the agent's acts on their behalf. By expressly ratifying the agent's actions, the principal becomes legally bound by the terms of the contract. 2. Implied Ratification: Implied ratification takes place when the principal's actions or conduct can be interpreted as adopting or recognizing the benefits derived from the contract. Although the principal may not have explicitly stated their approval, their behavior, such as accepting the benefits of the contract or acting as if the contract is valid, implies their ratification. Implied ratification is typically inferred from the principal's silence or failure to object to the agent's actions. North Carolina recognizes both express and implied ratification as valid means by which a principal can bind themselves to a contract executed by their agent. It is important to note that ratification can only occur if the agent had the authority to act on behalf of the principal at the time of contract execution. In conclusion, North Carolina Ratification by Principal of Agent's Execution of Contract involves the confirmation and acceptance of a contract performed by an agent on behalf of a principal. This ratification can either be express, through explicit approval, or implied, through the principal's behavior. Both types of ratification serve to legally bind the principal to the terms of the contract.
