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 York Ratification by Principal of Agent's Execution of Contract refers to a legal concept that validates a contract executed on behalf of a principal by an agent. The ratification occurs when the principal, after being made aware of the contract, accepts and approves of the actions taken by the agent. This process binds the principal to the terms of the contract as if they had entered into it themselves. In New York, there are primarily two types of ratification that can occur in relation to an agent's execution of a contract: 1. Express Ratification: This form of ratification takes place when the principal explicitly and directly communicates their acceptance and approval of the agent's act. It can be through verbal communication, written correspondence, or any other clear acknowledgment of the contract's validity. 2. Implied Ratification: In this type of ratification, the principal's acceptance and approval of the agent's act are implied by their actions or conduct. It may manifest through actions consistent with intended approval, benefiting from the contract's performance, or any other behavior that indicates affirmation of the contract. The significance of New York Ratification by Principal of Agent's Execution of Contract lies in its ability to validate a contract that may have been flawed due to the agent's lack of authority, exceeding their powers, or acting outside the scope of their agency. Ratification saves such contracts from being deemed void or unenforceable. It is crucial to note that New York Ratification by Principal of Agent's Execution of Contract can have legal implications, and parties involved should seek legal counsel if they encounter such a situation. Understanding the different types of ratification allows principals to make informed decisions regarding their acceptance or rejection of a contract executed on their behalf. Keywords: New York, ratification, principal, agent, execution, contract, express ratification, implied ratification, approval, acceptance, validity, authority, scope, agency, enforceable, legal counsel.
