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.
Texas Ratification by Principal of Agent's Execution of Contract is a legal concept that pertains to the validation of a contract executed by an agent on behalf of a principal. When an agent acts on behalf of a principal, there may be instances where the agent exceeds their authority or acts without proper authorization. In such cases, ratification by the principal can cure any defect in the agent's execution of the contract. In Texas, the law recognizes two types of ratification by a principal in relation to an agent's execution of a contract: express ratification and implied ratification. Express ratification occurs when the principal explicitly acknowledges and affirms the contract that was executed by the agent. This can be done orally, in writing, or through any act that unmistakably demonstrates the principal's intention to validate the agent's actions. Implied ratification, on the other hand, arises when the principal's conduct implies their acceptance or approval of the agent's actions. This can occur when the principal receives benefits from the contract, continues to perform obligations under the contract, or fails to repudiate the agent's actions within a reasonable time. In both cases, ratification has the effect of validating the agent's execution of the contract retroactively. Once ratified, the contract becomes binding on the principal as if they had originally authorized it. It is important to note that not all actions of an agent can be ratified by the principal. For ratification to occur, certain conditions must be met. Firstly, the agent must have purported to act on behalf of the principal without proper authority. Secondly, the principal must have knowledge of the agent's actions and the essential terms of the contract. Lastly, the principal must have the legal capacity to enter into the contract at the time of ratification. In Texas, ratification by principal of agent's execution of a contract serves as a tool to rectify situations where an agent may have exceeded their authority or acted without proper authorization. By ratifying the contract, the principal affirms their intention to be bound by its terms and prevent any disputes that may arise due to the agent's unauthorized actions. Keywords: Texas, ratification by principal, agent's execution of contract, express ratification, implied ratification, legal concept, authority, authorization, validation, defects, agent's actions, retroactively, binding, knowledge, essential terms, legal capacity, disputes.
