Agency Case
Essay by interruptter • October 18, 2012 • Essay • 378 Words (2 Pages) • 1,518 Views
There are five requirements for agency by ratification : Principal in Existence ; Principal with Capacity; Ratification must be Timeous ; Agent Acting as Agent ; Principal Aware of Material Facts.
For the agency by ratification to be effective, the principal must admit the agent has actual authority over the issue at question, the principal himself must the capacity to make contract, and if the principal is a legal entity, such as a company, it must remain its existance till the date on which the contract is made and also the date of ratification( Kelner v. Baxter,1866). And most importantly, the principal must be aware of the material facts and clearly communicate his intention the ratify the contract within a reasonable period of time.
In a agency by ratification relationship, though the principal is not aware of the contrad at first, he is liable for the obligations of the contract from the time of the commencement of the contract. Furthermore, all the liabilities that could have been incurred by the agent are transferred to the Principal as if he was the one who entered into the contract.
There are five requirements for agency by ratification : Principal in Existence ; Principal with Capacity; Ratification must be Timeous ; Agent Acting as Agent ; Principal Aware of Material Facts.
For the agency by ratification to be effective, the principal must admit the agent has actual authority over the issue at question, the principal himself must the capacity to make contract, and if the principal is a legal entity, such as a company, it must remain its existance till the date on which the contract is made and also the date of ratification( Kelner v. Baxter,1866). And most importantly, the principal must be aware of the material facts and clearly communicate his intention the ratify the contract within a reasonable period of time.
In a agency by ratification relationship, though the principal is not aware of the contrad at first, he is liable for the obligations of the contract from the time of the commencement of the contract. Furthermore, all the liabilities that could have been incurred by the agent are transferred to the Principal as if he was the one who entered into the contract.
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