If an agent has no authority to act on behalf of a principal, but the agent still enters into a contract with a third party, the principal is not bound unless ________.
A) the principal ratifies the agreement.
B) the principal is an unidentified principal.
C) the principal is a partially disclosed principal.
D) the principal is expressly barred from disaffirming the agreement.
E) a court finds that principal should be bound.

Question

Quizplus · Accepted Answer

The principal can be bound by the actions of an agent acting without authority if the principal ratifies (formally approves) the agreement made by the agent. Ratification can be explicit or implied through the principal's actions that are consistent with accepting the terms of the contract.

If an Agent Has No Authority to Act on Behalf