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.
Wisconsin Ratification by Principal of Agent's Execution of Contract refers to the legal process where a principal affirms or validates a contract that was executed on their behalf by an agent. This ratification occurs when the principal, upon learning about the contract, adopts the acts and obligations of the agent as if they had originally authorized them. In Wisconsin, there are several types of ratification by principal of agent's execution of a contract: 1. Express Ratification: This type of ratification occurs when the principal explicitly confirms and accepts the agent's actions and the terms of the contract. It can be done through written or verbal communication. 2. Implied Ratification: In this case, the principal's actions or behavior indicate their acceptance and approval of the contract. This can be shown through conduct or by accepting the benefits of the agreement without explicitly stating their ratification. 3. Partial Ratification: Sometimes, a principal may ratify only a portion of the contract executed by the agent. In such cases, the principal is bound by the ratified portion but not by the parts they choose not to ratify. 4. Retroactive Ratification: If the principal confirms the agent's actions after they have already been performed, it is known as retroactive ratification. This means that the principal retroactively adopts the contract from the moment it was entered into by the agent. Wisconsin's law recognizes the importance of ratification as it allows principals to validate contracts that were entered into on their behalf by agents without prior authorization. However, it is crucial for principals to carefully review the contract terms before ratifying to understand the implications and consequences associated with the agreement. Ratification by principal of agent's execution of contract in Wisconsin plays a significant role in ensuring the enforceability of agreements entered into by agents on behalf of their principals. It provides a mechanism for principals to affirm or disavow the contracts based on their interests and the circumstances of the agent's actions. It is advisable for principals in Wisconsin to seek legal counsel when dealing with ratification matters to ensure compliance with state laws and protect their rights and obligations in relation to contracts executed by agents.
