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.
Pennsylvania Ratification by Principal of Agent's Execution of Contract refers to the legal process by which a principal reaffirms or confirms a contract that has been entered into by an agent on their behalf. This act of ratification essentially validates the contract, making it binding and enforceable. Ratification is a necessary legal concept to ensure that actions taken by an agent on behalf of a principal are legally recognized and upheld. It often occurs when an agent exceeds their authority, enters into a contract without proper authorization, or makes mistakes during the execution of a contract. In Pennsylvania, there are different types of ratification by the principal of an agent's execution of a contract: 1. Express Ratification: This occurs when a principal explicitly confirms and approves the actions of the agent in a contract. It can be done through verbal or written communication, such as a letter or an email. 2. Implied Ratification: This type of ratification occurs when a principal's actions or behavior suggest their intention to affirm the agent's contract. It might be inferred from the principal's conduct or acceptance of benefits derived from the contract. 3. Retroactive Ratification: This occurs when a principal validates a contract after the agent has already acted on their behalf without prior authorization. The principal essentially backdates their approval to the time of the agent's actions. 4. Conditional Ratification: In some cases, a principal may ratify a contract with certain conditions or modifications. This means that while they approve the contract in principle, specific terms or provisions may need to be revised or negotiated before it becomes legally binding. Ratification by a principal of an agent's execution of a contract in Pennsylvania is an essential legal process to ensure the validity and enforceability of contracts entered into by agents on behalf of their principals. It provides a safeguard against unauthorized actions while allowing principals to affirm, modify, or reject contracts based on their best interests.
