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.
Oregon Ratification by Principal of Agent's Execution of Contract refers to a legal process where a principal confirms and validates a contract that was executed by their agent on their behalf. This ratification means that the principal adopts the contract and assumes all the rights, duties, and obligations outlined in it. In Oregon, there are primarily two types of ratification that can occur: express ratification and implied ratification. 1. Express Ratification: This type of ratification occurs when the principal explicitly approves the agent's actions and confirms their intention to be bound by the contract. It can be in the form of a written agreement, email, or verbal communication between the principal and agent. For example, if an agent enters into a contract with a third party without prior authorization from the principal, but the principal later becomes aware of the contract and explicitly acknowledges and agrees to be bound by its terms, it would be considered express ratification. 2. Implied Ratification: Implied ratification occurs when the principal's actions or behavior suggest their intention to adopt the contract, even though they may not have explicitly confirmed it. This type of ratification usually arises from the principal accepting the benefits of the contract or acting in a way that implies their acceptance. For instance, if an agent enters into a contract on behalf of the principal, and the principal receives and retains the benefits outlined in the contract without objecting to it, their actions imply their acceptance and ratification of the contract. Ratification by the principal of an agent's execution of a contract is a crucial legal concept as it allows the principal to be bound by the terms of the contract, even though they may not have directly participated in its creation. Ratifying the contract provides legal protection for the agent and ensures that the principal will fulfill their obligations under the contract. It is important to note that the ratification process has specific legal requirements and limitations. Principals must ratify the contract within a reasonable time after becoming aware of its existence, and the agent must have acted within their actual or apparent authority when entering into the contract. In conclusion, Oregon Ratification by Principal of Agent's Execution of Contract involves the principal confirming and adopting a contract executed on their behalf by an agent. Whether through express or implied ratification, this legal process allows the principal to be bound by the contract's terms and assume all duties and obligations outlined therein.
