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.
New Mexico Ratification by Principal of Agent's Execution of Contract is a legal process that allows a principal to confirm and approve the actions taken by their agent on their behalf. In this context, the agent is someone who acts as a representative for the principal, entering into contracts or performing any legal obligations. Key terms that are relevant to understanding New Mexico Ratification by Principal of Agent's Execution of Contract include: 1. Ratification: Ratification refers to the act of confirming or validating a previous action. In the context of contracts, it refers to the principal's acceptance and approval of the agent's actions. 2. Principal: In this context, the principal is the person or entity who authorizes and empowers an agent to act on their behalf. The principal delegates certain responsibilities to their agent, such as entering into contracts. 3. Agent: An agent is an individual or entity who acts on behalf of the principal, following their instructions and exercising their authority. Agents can be attorneys, employees, or any other party appointed by the principal. 4. Execution of Contract: Execution of a contract refers to the act of signing and formally entering into a legal agreement. It includes various steps such as offer, acceptance, consideration, and meeting the necessary legal formalities. New Mexico Ratification by Principal of Agent's Execution of Contract serves as a legal mechanism for principals to affirm the acts of their agents. It is crucial when the agent exceeds their authority or when the principal wishes to retroactively authorize an agent's actions that were initially unauthorized. Different types of New Mexico Ratification by Principal of Agent's Execution of Contract may include: 1. Express Ratification: This type of ratification occurs when the principal explicitly and directly confirms the agent's actions. It can be in the form of written or verbal communication, explicitly mentioning the acceptance of the agent's actions. 2. Implied Ratification: Implied ratification happens when the principal's conduct or behavior suggests approval of the agent's actions. It can be inferred from the principal's behavior, such as accepting the benefits derived from the contract or remaining silent despite knowledge of the agent's actions. 3. Conditional Ratification: In some cases, the principal may choose to ratify the agent's actions subject to certain conditions. The principal's acceptance may be contingent upon meeting specific requirements or resolving certain issues related to the contract. 4. Time-limited Ratification: This type of ratification is valid only for a specific period specified by the principal. It restricts the agent's actions to a predefined timeframe and may require the agent to secure additional ratification if needed after the time period expires. In summary, New Mexico Ratification by Principal of Agent's Execution of Contract is a legal procedure that allows principals to confirm and approve the acts of their agents. The ratification process can take various forms, such as express, implied, conditional, or time-limited, depending on the circumstances and the principal's intentions.
