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.
Nebraska Ratification by Principal of Agent's Execution of Contract Ratification refers to the act of confirming or approving a contract or agreement that has been previously executed by an agent on behalf of a principal. In the state of Nebraska, ratification plays a crucial role in establishing the legality and enforceability of contracts. It enables principals to validate contracts that were entered into by their agents, even if they were not initially involved or aware of the agreement. Nebraska recognizes two types of ratification by a principal regarding their agent's execution of a contract: 1. Express Ratification: This type of ratification occurs when a principal explicitly expresses their intention to accept and adopt a contract that was executed by their agent. To ratify the contract expressly, the principal must be fully aware of the contract's terms and willingly consent to it. Express ratification can be communicated orally, in writing, or through any other clear manifestation of the principal's intent. 2. Implied Ratification: In some cases, a principal's actions or conduct can imply their intent to ratify a contract. Implied ratification typically arises when the principal, with knowledge of all the material facts, acknowledges the benefits or acts in a manner consistent with the existence of an agreement. For example, if a principal accepts the benefits of a contract or continues to perform its obligations after becoming aware of it, their actions may imply ratification. Ratification has significant legal consequences of Nebraska's contract law framework. Once ratification occurs, the principal becomes bound by the terms and obligations of the contract as if they had been party to it from the beginning. Therefore, they can enforce their rights under the contract and may also be held liable for any breaches or non-performance. It is important for principals in Nebraska to be aware of their rights and obligations regarding ratification by a principal of an agent's execution of a contract. Seeking legal advice is recommended to understand the specific implications and ensure compliance with state laws. In conclusion, Nebraska recognizes both express and implied ratification by a principal of an agent's execution of a contract. Ratification grants principals the ability to validate contracts entered into by their agents, thereby enabling them to enforce their rights and fulfill their contractual obligations. Understanding the distinctions and implications of ratification is essential for individuals and businesses engaging in contractual relationships in Nebraska.
