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.
Tennessee Ratification by Principal of Agent's Execution of Contract is a legal doctrine that holds significance in contract law. When an agent acts on behalf of a principal, carrying out contractual obligations, the principal has the option to validate or endorse the agent's actions through ratification. Ratification occurs when the principal explicitly approves the agent's execution of a contract, acknowledging it as binding and assuming all the rights and responsibilities outlined within it. By ratifying the contract, the principal essentially adopts it as if they had been present during its formation, and they become bound by its terms. In the context of Tennessee law, ratification by the principal of an agent's execution of a contract is subject to certain requirements. The principal must have full knowledge of the agent's actions and the terms of the contract before giving their approval. Additionally, the principal must possess the legal capacity to enter into such a contract, ensuring that they are mentally competent and of the appropriate age. It is crucial to distinguish between two primary types of ratification that can occur in Tennessee: express ratification and implied ratification. 1. Express Ratification: This type of ratification is explicit and occurs when the principal clearly communicates, either verbally or in writing, their consent and approval of the agent's actions. Express ratification leaves no room for confusion, as it leaves a definitive record of the principal's intent to be bound by the contract. 2. Implied Ratification: Implied ratification emerges from the principal's conduct or behavior, demonstrating their acceptance of the agent's actions and the contract's terms. Implied ratification commonly occurs when the principal accepts benefits from the contract, allows time to pass without objecting, or takes any action that indicates their affirmation of the contract. It is important to note that ratification can occur both before or after an agent's execution of a contract. If the principal approves the agent's actions before their completion, it is known as pre-qualification. Conversely, if the principal ratifies the contract after the agent has already acted, it is referred to as post-ratification. Tennessee Ratification by Principal of Agent's Execution of Contract plays a significant role in ensuring legal binding in contractual relationships. It provides a mechanism for principals to validate their agent's actions if they deem them acceptable, thereby safeguarding their interests and ensuring that the contractual obligations are enforceable.
